Altus Group Releases CRE Industry Conditions & Sentiment Survey Findings

The Q4 2023 CRE Industry Conditions & Sentiment Survey highlights the participants’ perspectives on:

• Recession and capital considerations: cost of capital expected to stabilize, though availability of capital remains challenged in the near-term amidst expectations of a shallow recessionary macro backdrop and a challenging operating environment.

• Transaction intentions over the next six months: after a prolonged period of muted transaction activity, the majority of respondents indicated an intent to transact in the coming six months, with intentions varying significantly by firm size.

• Property performance and targeted returns: ranked expectations for property performance over the next 12 months show industrial and multifamily as the most favored types across North America. Target returns, measured by gross internal rates of return, remain in the low-double digit range (11.9% in the U.S., 11.6% in Canada), but vary significantly by property type.

• Priorities issues: financing, cost of capital and cost concerns top the list for the next year, though regulatory and political risk emerge as higher priority items particularly in the U.S.

  
  

To download the full reports by country, please use the following links:

• US Q4 2023 CRE Industry Conditions & Sentiment Survey

• Canada Q4 2023 CRE Industry Conditions & Sentiment Survey