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Altus Group: CRE Execs Plan More Transactions in 2024
A majority of the nearly 500 senior commercial real estate professionals surveyed by Altus Group Limited intend to transact over the next six months, following an extended period of muted transaction activity. Altus Group’s Q4 2023 CRE Industry Conditions & Sentiment Survey found that transaction intentions varied by firm size.
Other high-level themes of the survey, conducted among U.S. and Canadian CRE professionals at more than 100 firms, include the following:
- The cost of capital is expected to stabilize, though availability of capital remains challenged in the near term amid expectations of a shallow recessionary macro backdrop and a challenging operating environment.
- Ranked expectations for property performance over the next 12 months show industrial and multifamily as the most favored types. Target returns, measured by gross IRR, remain in the low-double-digit range (11.9% in the U.S., 11.6% in Canada), but vary significantly by property type.
- Financing, cost of capital and cost concerns top the list of priorities for the next year, although regulatory and political risk emerge as higher priority items, particularly in the U.S.
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