CRE Investment Falls To Decade Low, But That Could Soon Change


CRE Investment Falls To Decade Low, But That Could Soon Change
Investment in commercial real estate has been down in 2024, but with more certainty from the election results and falling interest rates, activity is expected to come back in a big way. In the third quarter, investment in nondistressed assets totaled $40.1B across 9,467 properties, down from $44.4B across 10,523 properties in Q3 2023, according to a report released last week by Altus Group. The number of transactions through the first nine months of this year was at the lowest level since 2011. But signs are pointing toward a market shift after the third quarter. In late September, the Federal Reserve cut interest rates by 50 basis points, and in November it enacted another 25-bps cut. November`s election of Donald Trump and a Republican Congress has also created more clarity around federal economic policy. With this increased clarity, brokers and researchers are voicing optimism about a pickup in investment sales activity in the final weeks of the year and into 2025. "I`m looking towards the end of 2024,"... ...more RSK: A lot of hope and promise for CRE transactions in 2025.
Share this article on you social outlets
Our Sponsors - - Volume: 24 - WEEK: 49 Date: 12/3/2024 9:43:42 PM -

Investment in commercial real estate has been down in 2024, but with more certainty from the election results and falling interest rates, activity is expected to come back in a big way.

In the third quarter, investment in nondistressed assets totaled $40.1B across 9,467 properties, down from $44.4B across 10,523 properties in Q3 2023, according to a report released last week by Altus Group. The number of transactions through the first nine months of this year was at the lowest level since 2011.

But signs are pointing toward a market shift after the third quarter. In late September, the Federal Reserve cut interest rates by 50 basis points, and in November it enacted another 25-bps cut. November`s election of Donald Trump and a Republican Congress has also created more clarity around federal economic policy.

With this increased clarity, brokers and researchers are voicing optimism about a pickup in investment sales activity in the final weeks of the year and into 2025.

"I`m looking towards the end of 2024,"...
...more

CRE Investment Falls To Decade Low, But That Could Soon Change

Share this article on you social outlets