National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
U.S. CRE Investment Volume Stabilizes in Q3
Commercial real estate investment volume stabilized at $90 billion in the third quarter of 2024, down just 2% year-over-year versus a 49% decline in the same quarter last year, CBRE reported. The CBRE Lending Momentum Index, which tracks the pace of CBRE-originated commercial loan closings in the U.S. increased by 13% quarter-over-quarter and 15% Y-O-Y in Q3, reflecting improved lending activity.
Private investors were net buyers in Q3, accounting for $53 billion of investment volume. Institutional, REIT and cross-border investors were net sellers. Inbound cross-border investment increased by 4% Y-O-Y to $3.9 billion in Q3 after five consecutive quarters of annual declines.
“With accretive leverage achievable throughout the third quarter, we saw a notable uptick in acquisition financing compared to both the prior quarter and the same period of last year,” said James Millon, U.S. president of debt & structured finance for CBRE. “The CMBS single-asset, single-borrower markets continued their strong issuance pace, with all asset classes represented. Notably, large office transactions in New York City underscored the return of debt liquidity for high-quality office assets backed by major institutional sponsors at conservative leverage.”
Life companies accounted for 43% of Q3 loan volume, followed by alternative lenders (34%) and banks (18%), according to CBRE. While commercial spreads remained unchanged at 183 basis points, spreads on multifamily loans tightened slightly to 168 bps during Q3.
- ◦Sale/Acquisition
- ◦Financing
