Investors Eye Multifamily and Industrial for 2021 Targets

While the macroeconomic recovery timeline is still uncertain, investors are enthusiastic about real estate investing in 2021. After the unforeseen volatility of 2020, Portland, OR-based CrowdStreet conducted a survey to understand how individual investors are considering investing in the year ahead.

The 2021 investor sentiment survey and investment results show overwhelmingly that both experienced and newer investors want more real estate in portfolios this year to diversify assets, reduce risk, and protect wealth and capital. The survey is based on responses from 1,240 North American individual investors.

Findings:

· 96% of surveyed investors plan to add commercial real estate to portfolios this year, beating out both stocks and bonds. Among investors who have never invested in real estate, 95% intend to make a first CRE investment in 2021.

· Investors value sponsor experience over targeted IRR when evaluating a potential opportunity.

· The Southeast was the clear regional winner, beating the Midwest and Mountain regions by 13 percentage points.

· The effects of the pandemic showed through in investors’ opinions on asset class, with multifamily and industrial topping the most-favored asset classes.

For comments, questions or concerns, please contact Lisa Brown