Multifamily Was Top Investment Sector in Q4 Even as Volumes Plunged
CBRE’s YoY data also give a nod to industrial and logistics.
The fourth quarter saw a “considerable” drop in commercial real estate volume as it plunged year-over-year by 63%, according to CBRE.
Multifamily remained the top sector for investment in Q4 (although it was down by 70%) and industrial and logistics came next.
Industrial property prices increased most YoY (+12 points) and had the largest average return at 14.5% annualized.
The hotel sector performed second best among several metrics.
Only Nashville had YoY growth among the top 20 markets tracked.
Private buyers were the biggest investors in Q4 at a 61% share of the overall spend. Private and institutional investors were net buyers and REITs and global investors were net sellers.
This was the second consecutive year of falling volume, as 2022 fell 17% from 2021’s record level, and yet 2022 was the second highest ever.
Los Angeles was the top market for total investment, ahead of New York and then Dallas.
Inbound cross-border investment decreased by 81% year-over-year in Q4 to $6.2 billion due to the strong U.S. dollar and economic uncertainty.