What’s Holding Sidelined Capital Back
HOW MUCH CAPITAL IS WAITING FOR MARKET STABILITY?
Market Could Heat Up Once Capital Is Deployed
With institutions holding over $200B to invest in real estate, the total quantity of dry powder likely is above $300B
This capital is being limited by the number of listed properties and uncertainty surrounding interest rates
Fed Signals Rates To Be “Higher-For-Longer”
The Fed signaled that those who are waiting for significant rate cuts may wait longer than expected
New projections show the Federal Funds Rate is expected to stay around 5% until after the end of 2024
Sidelined Capital Waiting To Rush Back Into CRE
As the market gets time to adjusts, the expectation gap between buyers-and sellers will narrow
Sidelined capital will return to the market and amplify deal velocity once buyers and sellers’ expectations calibrate
*Sources: Marcus & Millichap Research Services, Goldman Sachs
