Capital Availability Drives Office Investment Activity

Tina Lichens

The abundance of capital in the market is driving strong office investment activity this year. According to a recent office investor sentiment survey from Real Capital Markets, investors are cautiously optimistic about the office market, thanks to steady economic growth and low unemployment rate; however, the length of the cycle is also encouraging a high level of caution. Overall, investors that participated in the survey reported a high level of confidence for office investment.

“Office investment is largely driven by the availability of capital,” Tina Lichens, COO of Real Capital Markets, tells GlobeSt.com. “There are estimates that there is approximately $200 billion available for investing in commercial real estate in 2019 alone. While not all of that is allocated toward office property acquisitions, it is an incredible amount of capital to be placed.”