According to investment software company Juniper Square, close to 80% of commercial real estate executives surveyed said they’d raised capital in 2021, a far cry from the 91% who reported raising capital in 2020. But according to Juniper Square’s “Commercial Real Estate Executive Survey Summary: Capital Raising in 2022,” those who did seek out funds last year ended up raising more than they did in 2020.
Other 2021 trends include the following:
Property investment and ownership increased, with close to 40% reporting significant increase
Sponsors completed more deals over the past three years; again, close to 40% reported a significant increase in this activity
The primary source for capital raises were existing individual investors, followed by existing institutional investors
While many executives agreed that deals were highly competitive in 2021, plenty of liquidity was available
Many of those responding indicated that technology made their lives easier when it came to seeking out and raising funds.
In asking about the 2022 outlook, the majority of those surveyed indicated that capital availability will be about the same or more abundant, with close to 100% anticipating they would be raising funds in the coming year. The respondents indicated that their primary source for new capital would be new individual investors and new institutional investors, with the highest priority focused on bringing in larger investors and growing investor numbers.
How do they plan to find these investors? Close to 90% surveyed said they’d take referrals from existing investors, while around 45% will be seeking out information from other referrals.
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