DID REAL ESTATE MARKETS ALREADY REACH THE BOTTOM OF THE CYCLE?
Private and Institutional Investors Are Thinking Differently
- While many institutional investors believe CRE sales prices will contract further, many private investors believe the market is turning
- If institutions wait on the sidelines, private investors can benefit from reduced bidding for acquisitions
Should Investors Adjust Portfolios For Next Cycle
- Investors may sell performing assets to shift into markets and asset types and properties with greater upside potential
- This could mean executing a 1031 exchange to get capital into stronger growth-oriented properties or market
Pricing Beginning To Rise For Some Markets and Property Subtypes
- Average pricing is down from peak by between 5% and 30% for major property types, but certain segments appear to be back on the rise
- Will investors look back at 2024 and wish they’d bought more?
*Sources: Marcus & Millichap Research Services, Real Capital Analytics
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