Will Commercial Real Estate Values Rise in 2021
February 2021
In partnership with Wealth Management Real Estate, Marcus & Millichap performed an investor sentiment survey to judge how active investors across commercial real estate sectors predict assets will perform over the next year. Apartment investors had among the most positive outlook moving forward, maintaining that multifamily will continue to gain value even on the tails of the pandemic.
Video Highlights
Expectations for property values over the next 12 months paint an interesting picture of the CRE landscape
In general, real estate sectors fell into three buckets:
Momentum: Investor sentiment for Apartment, Self-Storage, and Industrial remains healthy as strong underlying demand drivers point to continued growth
Recovery: The hard-hit Hotel and Seniors Housing sectors experienced a shock as a result of the pandemic, though investors seem optimistic about how these property types will recover over the next 12 months
Uncertainty: Lingering uncertainty about the future of Office and Retail has left investors feeling more bearish on the outlook. Respondents may be overlooking the wide spectrum of opportunity within each of these sectors with some segments such as single-tenant and necessity retail outperforming
Survey results are not a forecast of future value, and those investors taking a long-term view can still find opportunities in the market that fit their investment strategies