New Investor Sentiment Survey Results for 2H 2021:
Strong Sentiment Points to Positive CRE Outlook
- Investor sentiment remained stable at 165, in-line with pre-pandemic levels; above 140 from this time last year
- About 74% of respondents say their properties are performing at or better than pre-COVID levels
- Half of respondents plan to increase their CRE holdings as values are expect to rise for all property types
Economic Recovery Expected to Drive CRE Appreciation
- Seniors Housing expected to see largest YOY gain at 7.5% due to a post-pandemic occupancy recovery
- Industrial benefited from rise in eCommerce and “Just In Case” inventory; investors anticipate 7.4% price growth
- Apartments, Self-storage, and Hotels also expect strong gains; driven by rent growth and economic recovery
Potential Headwinds Could Reshape CRE Landscape
- Changes to tax law, rising interest rates and elimination of 1031 Exchanges remain top investor concerns
- Despite elevated uncertainty, investor sentiment remains higher than 4 out of the last 5 years
As of 2H 2021
Base: All respondents; bases vary by property type currently invested in.
Sources: Marcus & Millichap Research Services, M&M/WMRE Investor Survey