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JLL says CRE investor competition is surging as credit markets regain liquidity
JLL reported the second-highest number of unique bidders for July CRE transactions in the past five years, and its bid and credit intensity indexes are above 100.
Investor demand for commercial real estate picked up this summer as liquidity improved in credit markets, according to JLL’s quarterly bidding and credit indexes.
JLL said competitiveness in investment sales reached its highest level in more than a year, and it recorded the second-highest number of unique bidders for July CRE transactions over the last five years.
JLL also reported that its Global Bid Intensity Index and Global Credit Intensity Index are both above 100, levels it says indicate capital markets are more active and competitive than normal, which can make winning bids more likely to exceed asking prices.
The company added that while average winning loan-to-value ratios have leveled off since April and the bid and credit intensity gap has cooled since a May peak, rising bond yields are widening the difference between what buyers are willing to pay.