In December 2018, Real Capital Markets surveyed and conducted interviews with a wide range of industry experts, from entrepreneurial investment firms to institutions. Participants active in all property types, from office to industrial to multifamily and retail, weighed in on the commercial real estate industry as it enters a year of questioning – will the market continue to boom…or will it bust?
- Investors remain in buy mode despite increasing interest rates
- The fundamental need for housing continues to drive the multifamily market
- Industrial viewed as the second most attractive asset class
- Still plenty of capital available, though trickier to make deals
One year ago, investor sentiment charged ahead with much optimism for 2018. With a strong focus on both value-add deals and the industrial market as a whole, investors continued their search for the best way to achieve a strong yield. As we begin 2019, investors understand that good opportunities are still available, but often require more work to identify, underwrite and close. Above all, sentiment remains optimistic, though cautionary, that a plateau may be on the horizon.