MSCI recently covered overall CRE activity in Q1: deal activity down 56%, cap rates up 30 basis points.
In addition to more detail by property type, the firm also looked at alterative CRE sectors, including medical office, manufactured homes, life science/R&D, self-storage, student housing, age-restricted, cold storage, and data center. In 2020 Q2, they were 12% of CRE sales. Now they compose 8%, losing a third of their percentage representation.
These other choices for investors and developers and operators were supposed to open opportunities in part because the most popular types were overly popular with cap rates that were moving down. It makes some business sense that at more difficult times, they might take more of a hit than standard categories.
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