The Q1 2024
- Capital considerations: with cost and availability of capital stabilizing, near-term capital deployment moves into focus amongst
U.S. respondents, surging from 7% in Q4 2023 to 25% in Q1 2024, while Canadian respondents remain focused on de-risking existing portfolios.
- Transaction intentions over the next six months: majority (80%) of respondents signalled expectations for near-term transaction activity to pick up over the coming six months, indicating intentions to transact (either buy, sell, or both).
- Property performance and targeted returns: for the second consecutive quarter, industrial and multifamily remain the most favoured property types with office expected to be the worst performer over the next 12 months. Interestingly, retail overtakes both multifamily and self-storage in terms of net favourability amongst
U.S. respondents.
- Priority issues: cost of capital remained the top priority issue for a second consecutive quarter; however, capital concerns eased quarter-over-quarter. In the
U.S. , capital/credit availability still ranks high on the list with expense management ranking higher over Q4 2023, and inCanada , cost concerns (development costs and inflation) are still top of mind.
“The survey findings underscore the intricate relationship between the commercial real estate asset class and the macroeconomy and capital markets, which Altus’ portfolio analytics increasingly validate are impactful drivers of asset performance,” said Omar Eltorai, Director of Research at
To download the full reports by country, please use the following links:
U.S. Q1 2024CRE Industry Conditions & Sentiment Survey Canada Q1 2024CRE Industry Conditions & Sentiment Survey
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FOR FURTHER INFORMATION PLEASE CONTACT:
Director,
1-416-641-9787
Elizabeth.Lambe@altusgroup.com
Source:
2024 GlobeNewswire, Inc., source