Steady Investment Activity Shows Commercial Real Estate Resilience
Mar 29, 2022, 09:58 AM
by
Jing Ren
After U.S. commercial real estate investment volume declined in 2020, 2021 recorded a remarkable comeback.
With a share of 43% of investment volume in 2021, multifamily remained the preferred sector. This marks the most robust activity since EA’s data collection started in 2001, underscoring investors’ confidence in the sector.
Except for retail, cap rates are expected to stabilize and stay slightly lower than their pre-COVID-19 levels over the next few years.
The relatively high cap rates spread can provide some cushion against rising interest rates over the next five years.