Marcus & Millichap Inc.

06/28/2022 | Press release | Distributed by Public on 06/28/2022 15:17

Rising Interest Rates, Inflation Lead Investors to Reassess Which CRE Assets to Pursue

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Rising Interest Rates, Inflation Lead Investors to Reassess Which CRE Assets to Pursue

June 28, 2022
Should they continue to favor multifamily and industrial assets, which have served them well through the pandemic disruption? Or switch to higher risk, but higher yield investments? It looks like the best approach might be combining the two strategies.

A report released last Wednesday by MSCI Real Assets, a global investment research firm, showed that the volume of commercial property sales is tapering off and that across the core property sectors, only apartments, retail and hotels posted growth in deal volume in May 2022 compared to May 2021. According to the report, inflationary pressures and rising interest rates have thwarted deals that no longer made economic sense.
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