Why CRE Buyers aren’t Moving to the Sidelines
Look Beyond the Headlines and Focus on the Facts
- Economic fundamentals are solid; 1.7M jobs were created in 1Q22, pushing unemployment down to 3.6%
- An additional $6T more cash on hand than normal is helping drive record retail sales
- Households have more cash savings than debt for the first time in 30 years, a strong positive for the economy
Investors Have Wide Range of Options Within CRE
- Investors can choose between different property types, asset classes and markets that best align with their goals
- Opportunities exist in top-tier premium assets in sought-after markets all the way to value-add in softer markets
- Depending on the composition, cap rates can range from mid-2% all the way to as high as 9%
Real Estate Investors Are Planning for the Long-Term
- Unlike with more volatile investments, CRE investors do not trade sporadically, only when circumstances change
- CRE delivers long-term cash flow and inflation resistance
- Commercial real estate is particularly suited for the current economic climate and the road ahead
*Sources: Marcus & Millichap Research Services, Federal Reserve
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