Private Investors Taking the Lead in CRE Investment

Written By Christian Desnoes

Market Turbulence Could Drive Capital Toward CRE​

Financial Market Volatility Is Driving Capital Repositioning​

  • Stock market corrected 20% from mid-February to April 8 before partial recovery​

  • Bond market acting abnormally, yields rose instead of falling after tariffs​

  • Rising gold and crypto prices suggest investors are seeking safe havens​

Institutions May Pull Back While Private Investors Step In​

  • Foreign and institutional buyers may reduce CRE activity amid market volatility​

  • Portfolio rebalancing needs could lead some institutions to sell CRE assets​

  • Private investors made up 61% of CRE buyers in 2023, rising from 52% in 2020​

Private Capital Expected to Lead in CRE Investing​

  • Smaller equity funds and syndicators boosting multifamily average​

  • Private buyers likely to stay active as CRE offers long-term value​

Includes apartment, retail, office, industrial, and hotel sales $2.5 million and greater​
Sources: Marcus & Millichap Research Services, Real Capital Analytics​

​​​Watch Video Below:

Christian Desnoes
Previous

Multifamily Well Positioned to Face Economic Headwinds
Next

Market Reacts to Tariffs – Implications for CRE