Investor optimism is heartier in 2024, though it does come with hesitations.
In a U.S. Investor Intentions Survey from CBRE Research released during the first quarter, results show investors’ biggest concerns involve higher-for-longer interest rates, tighter credit availability and loan terms, and differing buyer and seller expectations.
So far this year, interest rates haven’t budged, exacerbating tighter credit availability and loan terms.
But Dallas-Fort Worth continues to be a bright spot for investors. Survey results showed the region was the strongest-performing market in the country for total property returns.
Investors also reported in the survey they felt D-FW is the most attractive market in the country for investment.
More than half of the investors said they planned to buy more in 2024 than they did in 2023. Nearly three quarters expect to sell the amount or more than they did year over year.
The majority of investors project transaction activity to pick up in the second half of 2024, both for the market as a whole and for their firms and companies.
Already in North Texas, developers are priming sites to finance projects in a better capital markets environment, and investment firms are readying for potential distress in the market among the potentially overleveraged.
Companies, such as Dallas-based CBRE, are hiring accordingly as well. The commercial real estate services and investment firm tapped Kelly Whaley to lead its investor services business in the D-FW market. Whaley will lead investor leasing, capital markets and property management in the role, with an emphasis on institutional clients.
Those moves anticipate potential rate cuts teased on Wednesday by Federal Reserve chair Jerome Powell during a speech at Stanford University.
Further survey results showed investors had a preference for multifamily real estate, followed by industrial and logistics.
While D-FW is projected to taper construction in both asset classes compared to previous years, it will still add more than most metros in the U.S.
The majority of respondents to the investor intentions survey were developers, owners and operators. Other respondents included those involved in real estate funds, private equity funds and real estate investment trusts, among others.
