Investor Perspectives on the Value of Commercial Real Estate
Investors See Opportunities in Pandemic-Impacted Sectors
- Despite uncertainty around return-to-office, Office absorption has been positive & rising for 3 quarters
- Investors expect 2.4% Y-O-Y Office price appreciation
- Loosening COVID mandates & strong growth trajectory has investors projecting 3.7% rise in Retail values
Underlying Trends Will Continue to Drive CRE Appreciation
- Housing shortage has 43% of Apartment investors saying it’s a good time to buy; Anticipate 8.6% price climb
- While 40% of all investors think it’s time to buy Industrial, 58% of owners think the same; Expect 7.4% value rise
- Supply shortages to sustain warehouse demand
Insiders’ Insights Provide Unique CRE Opportunities
- Certain Hotel types performing near pre-COVID levels, creates expectation of 7.3% value gain over the next year
- Record-low vacancies & subdued construction pipeline has Self-Storage investors forecasting 6.4% value gain
- Consolidation trends and strong demographics create expectation of 9% value gain for Seniors Housing
*As of 1H 2022
Base: All respondents; bases vary by property type currently invested in.
Sources: Marcus & Millichap Research Services, M&M/WMRE Investor Survey
Watch the Video Below