Brook Farm Group’s Post

Interesting insights from CBRE's latest survey reveal that commercial real estate cap rates have likely peaked, thanks to the Fed's more accommodative stance and a decline in bond yields since October 2023. The survey, which polls CBRE's capital markets and valuation professionals, found that most respondents expect no change in cap rates across various asset classes in the next six months. However, sentiment diverges by property type, with industrial cap rates anticipated to drop, while office yields continue to rise amid persistent uncertainty. Stay informed on these trends as the market navigates this period of price discovery and fluctuating expectations. Bio: https://lnkd.in/eB3g9bP3 Google Business Profile: https://lnkd.in/egn5jSck LinkedIn: https://shorturl.at/bmDMV Facebook: https://lnkd.in/eGTqGWuN Instagram: https://lnkd.in/eZMXQpjn TikTok: https://lnkd.in/ejfsyqfM #commercialrealestate #commercialproperty #CommercialLand #commerciallandforsale #warehousespace #officespace #flexspace #industrialspace #sandiegocommercialrealestate #sandiegorealestate #realestate #cre #realtor #realestateagent #realestateinvesting #property #commercial #commercialproperty #realestateinvestor #business #investment #propertymanagement #investmentproperty #residentialrealestate #forsale #retail #entrepreneur #construction #officespace #realestatebroker #EconomicInsights #InflationAnalysis #FedPolicy

New insights from our latest Cap Rate Survey. Our #CBREVAS professionals estimate that cap rates are nearing peak levels, indicating stabilizing conditions ahead. Despite challenges like tighter lending standards and potential market distress, the commercial real estate market shows resilience.   Here's what our survey reveals:   ✅ Retail and multifamily cap rates show the smallest increases, demonstrating their stability in the market. ✅ The office sector experiences the largest jump in cap rates, particularly for Class C properties in CBDs. ✅ Neighborhood retail cap rates demonstrate the highest stability among all property types.   These findings provide valuable insights for investors as they navigate the evolving commercial real estate landscape. By adapting strategies, investors can position themselves to generate favorable risk-adjusted returns in a stabilizing market. #CRE #CommercialRealEstate #CapRates #MarketTrends #Valuation #Appraisal

📉 Weak #economic growth is likely to make 2024 a challenging year for real estate markets. However, falling interest rates will act as a counterbalance in boosting growth and contributing to a capital markets revival. 👉 Ruth Hollies, Senior Director of European Forecasting at CBRE, reveals the upside risk for 2024 in our latest European Real Estate Market Outlook report: https://cbre.co/48Cc2qi

Weak economic growth is likely to make 2024 a challenging year for real estate markets. However, falling interest rates will act as a counterbalance in boosting growth and contributing to a capital markets revival. Ruth Hollies, Senior Director of European Forecasting at CBRE, reveals the upside risk for 2024 in our latest European Real Estate Market Outlook report. Gain the latest insights: https://lnkd.in/d-wc7AEC

Every Monday afternoon I like to post about an article or current event in the real estate world. Today I will share MSCI's recent blog post which sheds light on key trends in the real estate sector. After a challenging 2023, marked by declining asset valuations and reduced transaction volumes, the upcoming year presents both challenges and opportunities. Key trends to watch include: Distressed Sales: An increase in distressed sales is anticipated as loans mature, particularly those originated at peak property prices and low mortgage rates. Pricing Gap: A significant gap between buyers' and sellers' pricing expectations is affecting market liquidity, especially in office properties. Office Sector Performance: The office sector may face further valuation drops, influenced by factors like higher interest rates and weakening economic growth. Shifting Risk/Return Landscape: Investors are reassessing value across real estate asset classes, influenced by changes in the economic and financing landscapes. Climate Change Impact: The growing impact of climate change, including increased insurance costs and physical risks, is becoming a critical factor for investors. We have already seen these have an impact on 2023, do you think the impact will be greater in 2024? What other impacts are you looking at for? #RealEstateTrends #InvestmentInsights #MarketAnalysis #MSCI #CommercialRealEstate #RiskManagement #ClimateChangeImpact #RealEstateInvesting

Every Monday afternoon I like to post about an article or current event in the real estate world. Today I will share MSCI's recent blog post which sheds light on key trends in the real estate sector. After a challenging 2023, marked by declining asset valuations and reduced transaction volumes, the upcoming year presents both challenges and opportunities. Key trends to watch include: Distressed Sales: An increase in distressed sales is anticipated as loans mature, particularly those originated at peak property prices and low mortgage rates. Pricing Gap: A significant gap between buyers' and sellers' pricing expectations is affecting market liquidity, especially in office properties. Office Sector Performance: The office sector may face further valuation drops, influenced by factors like higher interest rates and weakening economic growth. Shifting Risk/Return Landscape: Investors are reassessing value across real estate asset classes, influenced by changes in the economic and financing landscapes. Climate Change Impact: The growing impact of climate change, including increased insurance costs and physical risks, is becoming a critical factor for investors. We have already seen these have an impact on 2023, do you think the impact will be greater in 2024? What other impacts are you looking at for? #RealEstateTrends #InvestmentInsights #MarketAnalysis #MSCI #CommercialRealEstate #RiskManagement #ClimateChangeImpact #RealEstateInvesting

Cap rates are expected to stay consistent over the next six months, according to a biannual survey conducted by CBRE. Recent data indicates rates are nearing their peak levels, which may lead to a balanced market. This reflects a change from the previous year, where commercial real estate experts expected it to rise. Learn more about the report's market findings here: https://bit.ly/43kKzYo #CommercialRealEstate #CRE #RealEstate #MarketTrends #CREMarketReport #CapRates

Weak economic growth is likely to make 2024 a challenging year for real estate markets. However, falling interest rates will act as a counterbalance in boosting growth and contributing to a capital markets revival. Ruth Hollies, Senior Director of European Forecasting at CBRE, reveals the upside risk for 2024 in our latest European Real Estate Market Outlook report. Gain the latest insights: https://cbre.co/3SDph3s

Just read CBRE’s earnings transcript for Q3 2023. Couple of takeaways: - They believe we won’t see an uptick in capital markets activity until the 2nd half of ‘24 “at the earliest” - In order for that to happen, interest rates are going to have to stabilize and the belief (from buyers) that property valuations have come down (i.e. prices of real estate has dropped to attractive levels) So when are property valuations attractive? When buyers can achieve positive leverage. That’s my opinion, not theirs.

See Below for the most recent CBRE US Cap Rate Survey (2H 2023). Average multifamily cap rates were up 50 bps as fundamentals weakened in some key markets. Fewer survey respondents believe cap rates will increase in H1 2024 compared to H1 2023, reflecting investor expectations of a more accommodative Fed Policy and bond yield declines from October 2023 highs. https://lnkd.in/exP4URWd