* Trailing 12 months through 1Q
Includes apartment, office, retail, industrial, hotel and seniors housing sales $2.5 million and greater
Sources: Marcus & Millichap Research Services, Real Capital Analytics
Private Real Estate Buyers Becoming Increasingly Active
- Over the last decade, private buyers have comprised a larger and larger share of overall CRE dollar volume
- These investors are sophisticated and have access to considerable amounts of investment capital
- This trend intensified in 2020 as non-private buyers moved to the sidelines amid heightened uncertainty
Buyer Composition Varies by Property Type
- Private investors made up a larger share of buyers for the four main property types in all sales under $50 million
- Private investors gained the biggest share in Apartment properties over $15 million and all Industrial properties
How Will the Investment Landscape Look Moving Forward?
- Private capital targeting CRE continues to grow, particularly in the current low yield environment
- They will likely continue to expand parameters, targeting bigger deals across a boarder spectrum of asset classes
- As investors return and competition for properties intensifies, further pressure could be placed on cap rates