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Commercial real estate sentiment improves as investors favor stability
SitusAMC attributed the shift to investors viewing CRE as more stable than stocks and bonds amid tariff and geopolitical uncertainty.
Commercial Observer reports that SitusAMC’s ValTrends research found commercial real estate has returned to the top of its quarterly investor preference survey.
SitusAMC senior director Peter Muoio said investors see CRE as relatively stable during turbulent periods, citing factors such as tariffs, the war in Iran, and broader uncertainty. He added that cash has generally stayed strong versus stock and bond markets that can swing more widely.
Muoio also pointed to how, after Fed tightening in 2022, the relationship between CRE buying and selling diverged, with holding dominating. He noted the quarterly survey showed buying and selling perceptions have started to move closer together, which could support more transactions if alignment continues.
On capital availability, Commercial Observer reports that SitusAMC said both equity and debt capital remain constrained compared with history due to the same uncertainty. The firm also highlighted that lending analytics are becoming increasingly property and micro-area specific, requiring greater selectivity from investors and lenders.