“Commercial real estate investors in the Americas are showing a clear shift in risk tolerance and a preference for secondary markets in 2021, according to the findings of CBRE’s latest Americas Investor Intentions Survey. The survey, which covers all asset types, found that investor sentiment and activity began to improve in the second half of 2020, and should continue to improve this year as widespread vaccination aids the economic recovery.” (CBRE, 3/25)
What you need to know:
- Surveyed commercial real estate investors signaled an increase in risk tolerance with 30% saying they are targeting opportunistic and distressed assets in 2021. This is a record-high level and compares with 16% in 2020.
- For the first time ever, large investors (AUM greater than $50 billion) are more interested in secondary markets than primary markets. Investors have also indicated they plan to expand the range of property types in their portfolios. 72% of respondents are actively pursuing investment in one or more real estate alternatives, like medical office or cold storage, compared to 54% in 2020.