WHAT 1Q 2024 CRE DATA MEANS FOR INVESTORS
Apartment and Industrial Vacancy Softens Slightly
- High construction levels are leading to mild apartment and industrial vacancy increases to start the year
- Apartment demand is still positive, and both industrial and apartment outlooks for the next 3-5 years are bright
Multi-Tenant Retail is Having Its Moment in the Spotlight
- Multi-tenant retail assets absorbed over 1.4M square feet in the first quarter, keeping vacancy near record lows
- Strong performance within the asset class at a time when most CRE types are seeing softening bodes well for retail investors
Lack of Space Demand Drop Off to Boost Next Cycle
- Slight softening as record construction pipelines finalize suggests demand will be heightened once the rate tightening cycle plays out and construction levels diminish
- As discussed in last week’s video, if CRE fundamentals maintain current levels, investors could regret not deploying more capital this year
*Forecast
Sources: Marcus & Millichap Research Services, CoStar Group, Inc., RealPage Inc.