Market Turbulence Could Drive Capital Toward CRE
Financial Market Volatility Is Driving Capital Repositioning
- Stock market corrected 20% from mid-February to April 8 before partial recovery
- Bond market acting abnormally, yields rose instead of falling after tariffs
- Rising gold and crypto prices suggest investors are seeking safe havens
Institutions May Pull Back While Private Investors Step In
- Foreign and institutional buyers may reduce CRE activity amid market volatility
- Portfolio rebalancing needs could lead some institutions to sell CRE assets
- Private investors made up 61% of CRE buyers in 2023, rising from 52% in 2020
Private Capital Expected to Lead in CRE Investing
- Smaller equity funds and syndicators boosting multifamily average
- Private buyers likely to stay active as CRE offers long-term value
Includes apartment, retail, office, industrial, and hotel sales $2.5 million and greater
Sources: Marcus & Millichap Research Services, Real Capital Analytics
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