Berkadia’s seventh annual Powerhouse Poll predicts a boost in investors’ confidence due to improving economic conditions in 2024. Investment advisors foresee increased activity as investors pursue strategic opportunities, with 72% anticipating stronger institutional transaction volumes. Private investors are expected to lead acquisition activity, with 78% of respondents agreeing. Despite challenges like inflation and high interest rates, Fannie Mae and Freddie Mac are forecasted to be active lending sources. Class A and B multifamily properties are in high demand, driven by shifting demographics and investor preferences. Millennials and Gen Z are projected to remain active renters, favoring rental housing due to market conditions.
Bottom Line:
Investor sentiment is expected to rise in 2024 amid improving economic conditions.
Neal's take
The last 24 months have been fairly catastrophic for the commercial real estate industry so it is nice to see that Investor confidence is coming back. Yes, rates are taking forever to drop, but more and more in the industry are talking about this being the bottom or being close to the bottom.