• Signs are pointing to CRE values bottoming and a recovery emerging.
• The buyer pool is getting deeper, and valuation requests continue to increase, implying continued market activity.
• Data from CoStar, Green Street, MSCI, Moody’s, and NCREIF can help support pricing direction.
• Multifamily and industrial stand out as the asset classes furthest into recovery
• Retail has shown the strongest gains.
• Office’s slide also shows signs of abating as capital returns to this discounted asset class.

Asset Pricing Comparison

Investors are continually monitoring where we are in the cycle and where asset class pricing is headed. With that in mind, we analyzed several major data providers to compare how each asset class is performing. Despite recent market volatility, investors are looking to allocate capital to commercial real estate. Private capital is driving today’s transaction activity, allowing for a wide variety of investment targets and risk profiles. Owners are seeking property valuations at an increased pace, and assets on the market are receiving deeper bid sheets. Both trends indicate improving market conditions and provide support for pricing.

Source: Colliers