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

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