Where CRE Fundamentals Stand And What It Means For Investors
Opportunity Exists In CRE, Even In Hard-Hit Sectors
- Local market dynamics can outweigh strong macro trends; some markets have stable or improving office vacancy rates, despite broad-based headwinds
- Opportunities in impacted CRE segments highlight the importance of looking beyond national trends
Retail and Industrial Outperforming as Sectors
- The multi-tenant retail sector now has vacancy below the 1Q 2020 level in 24 major U.S. markets
- Industrial properties are also recording lower vacancy in 40 of 48 tracked metros, spurred by 52 consecutive quarters of positive net absorption
Investors Should Look Beyond The Headlines
- All property types have locations, segments, and asset types that have exceeded national performance trends
- Opportunities exist in the market despite economic headwinds if investors stay alert and active
*From 1Q 2020 to 1Q 2023
Sources: Marcus & Millichap Research Services, CoStar Group , Inc., RealPage Inc
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