According to CBRE’s U.S. Real Estate Market Outlook 2024, this year promises ripe opportunities for savvy investors, with multifamily and industrial assets emerging as prime favorites.
In the Capital Markets section of the report, CBRE says these property types boast robust fundamentals, including strong demand, low vacancy rates, and consistent rent growth, making them particularly attractive in the current market climate. Retail fundamentals also show resilience but are tempered by the potential for a slowing economy.
For all-cash buyers, the higher cost of debt capital presents a unique advantage, reducing competition for premium assets. Furthermore, a substantial influx of capital in the private credit market for opportunistic investments indicates a fertile ground for strategic acquisitions.
While investment activity is anticipated to moderate, with a projected 5 percent year-over-year decrease in total investment volume, there are substantial opportunities for astute investors. Class B and C office assets may experience distress, prompting sales amidst eroding values. However, the decline is expected to stabilize, supported by forecasts of a relatively elevated 10-year Treasury yield throughout the year.
As we navigate the nuanced dynamics of the real estate market in 2024, strategic positioning and a keen eye for emerging opportunities will be key to unlocking success in the ever-evolving landscape of real estate investment.
