Alternative CRE Assets Took a Bigger Hit Than Traditional Ones in Q1

In the second quarter of 2020, they represented 12% of CRE sales. Now they’re down to 8%.

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.

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Erik Sherman

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