The real estate industry has experienced a remarkable level of growth over the last decade, and while this growth has been positive for many in the real estate world, it is natural for investors and market observers to question whether we are approaching a slowing of the current expansion cycle.
Real Capital Markets recently released their 2019 Investor Sentiment Report, which provides an overview of their findings from surveys and interviews they conducted with a wide range of real estate industry experts. The report attempts to quantify the approach that commercial real estate investment professionals are taking in the current market, as well as provide insight into which sectors of the Commercial Real Estate (“CRE”) market investors are currently favoring, how they expect the market to change over the coming year, and what kinds of strategies they are employing to find high-yield investment opportunities.
Once again, according to the report, industrial real estate is widely considered one of the most attractive CRE asset classes. The investors surveyed in the report cite industrial’s stable outlook, strong market fundamentals, and close ties to eCommerce as a few of the main reasons they remain committed to this sector.
In general, investors reported that they remain optimistic and solidly in investment mode, though they recognize that finding high yield investment opportunities requires a little more research and due diligence than it has in recent years due to factors like rising interest rates and sometimes unrealistic seller expectations.