National Investor Sentiment Report – January 2018
In December 2017, Real Capital Markets surveyed and conducted phone 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 continues to move through a historic growth cycle.
- Value add investing continues to be the focus of the vast majority of investors.
- Investors have a positive outlook, but concerns about market dynamics could influence their investments in 2018.
- The white hot industrial market has caught investors’ attention, moving industrial assets into an almost dead heat with multifamily for asset class of choice.
- While there has been a lot of discussion about interest rates, the majority of those surveyed said interest rates will have no impact on 2018 acquisition activity.
One year ago, investors and their representatives were cautiously optimistic about what 2017 would hold; and they were rewarded for their optimism. Today, at the start of 2018, most in the industry remain optimistic about the year ahead. There is general agreement that the focus will continue to center on value add, in spite of the real shortage of attractive opportunities. Investors today continue to search for the best ways to achieve a strong yield and achieve the residual pop that is expected with this type of investment.