CRE investors, brokers, lenders expect rush to place capital ahead of U.S. election
February 5, 2020 | azbigmedia.com
According to a new report, commercial real estate investors, brokers and lenders are expecting a potential surge of activity in the first half of 2020. Report participants noted the intersection of strong market fundamentals, ample investor capital, the potential for increasing headwinds generated by a slowing economy, and the impending presidential election as contributing factors.
The 2020 RCM LightBox Investor Sentiment Report, incorporating views from investors, brokers, lenders and economists, found that nearly 70 percent of participants in the report believe investment activity levels in 2020 will be the same or higher than in 2019. Almost 80 percent believe sale prices in 2020 will be the same or higher than in 2019.
“I think in the first half of the year, capital will rush to put money to work ahead of the election and before the Fed changes its mind on interest rates,” says K.C. Conway, MAI, CRE, CCIM Chief Economist and Director of Research & Corporate Engagement, Alabama Center of Real Estate (ACRE). “The wind is at your back for the first six months.”
