$205B of Dry Powder Ready to Pounce on Distressed CRE Assets

But falling valuations won’t hit bottom for another six to 12 months.

By Jack Rogers | September 01, 2023 at 08:23 AM

Real estate investors sitting on a mountain of dry powder may have to wait another six to 12 months for the lowest valuations to arrive before they pounce on a growing pool of distressed CRE assets.

Data analytics firm Preqin estimates there is a more than $205B currently earmarked for investment in CRE in the US. Meanwhile, CRE prices are heading for bargain basement prices as valuations drop: across all sectors, prices have dropped an average of 16% since their peaks in March 2022, according to Green Street data.

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