RCM Survey: Commercial Real Estate Investors Still in Buy Mode

Posted on February 15, 2018

Commercial real estate investors are intent on buying real estate assets, with a preference for multifamily and industrial. The recently-passed tax legislation, in part, will strengthen corporate growth and validate value-add investing strategies, according to Real Capital Markets’ (RCM) National Investor Sentiment Report.

The national survey reveals the vast majority of investors – 76.7% – characterized their investment strategy as buyers. More than 41% said they are in full-buy mode, while 35.3% characterized their strategy as buy but trending toward hold. Almost half (48.4%) said their attitude has not changed in the last 12 months, and 16.5% said they are even more of a buyer now than they were one year ago.

Real Capital Markets’ Steve Shanahan says, “Investors across the country continue to see great opportunity and benefit in commercial real estate investing. Regardless of the product type or whether the strategy is core or value-add, the focus is on finding assets that can deliver strong yields that outpace other investment options.”

Key findings:

– 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