Compelling opportunities will emerge for commercial real estate investors in 2024, as high interest rates and an economic slowdown—perhaps even a mild recession—lead to bargain pricing for certain assets. Commercial real estate investment activity likely will begin to pick up in the second half of 2024.

Key Takeaways:

• Capital Markets: Notable amounts of equity capital remained on the sidelines at the end of 2023, particularly for value-add and opportunistic strategies, and we expect that some of this capital will be deployed in 2024.
• Office: The normalization of hybrid working arrangements will continue to limit office demand.
• Retail: Real estate fundamentals should remain strong due to the scarcity of new construction deliveries over the past decade.
• Industrial: The industrial market is expected to remain healthy, with net absorption on par with 2023 levels.
• Multifamily: The biggest wave of new apartment supply in decades will temper rent growth and improve affordability for renters.
• Hotels: Despite a decelerating macroeconomic environment, continued gains in inbound international travel and upside in domestic business and group travel will drive RevPAR growth.
• Data Centers: Demand for new data center development will attract more institutional investment, as investors reallocate capital from the office sector to real estate alternatives.

EXPLORE REPORT

Source: https://www.cbre.com/insights/books/us-real-estate-market-outlook-2024?