Interstate CRE Investment on The Rise

Capital Movement Between States On the Rise

• Increased out-of-state buyer activity
• Secondary and tertiary markets claiming larger share of total CRE sales volume

Advantages of Out-of-State Investing

• Geographic diversification may mitigate risk
• Wider range of assets and yields available
• Unique market forces may create opportunities

Considerations for CRE Investors

• Influx of out-of-state capital has contributed to yield compressions across market types
• Out-of-state buyers may have different decision drivers and objectives, could pay premium
• Marcus & Millichap provides:
  • Buyers with access to nationwide inventory
  • Sellers with a national pool of buyers

*As of trailing 12 months through 2Q 2022
Sources: Marcus & Millichap Research Services, MNet

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