CRE Investors Getting Nervous, or Is Confidence Building?

Economic uncertainty continues, but the fundamentals of the multifamily market have been steadily improving. With this in mind, recent data on investor sentiment shows a mix between long-term confidence and short-term worries. The longer-term investment period of CRE investments favors an extended outlook, but pressure has not abated owners of struggling properties. “Survive through ’25” may be a fitting slogan for the year as multifamily owners and investors look forward to a more favorable market and more predictable economic conditions over the longer-term.

Multifamily, the Nation, and the Economy

Multifamily and the Housing Market

Multifamily Buyer & Seller Sentiment Improves in Q1

CBRE: “Underwriting assumptions for core multifamily assets improved in Q1, while those for value-add assets slightly weakened. Buyer and seller sentiment improved for both core and value-add assets. This comes despite the Federal Reserve indicating a slower pace of interest rate cuts this year as it awaits more clarity on policy shifts by the Trump administration.”

Multifamily Markets and Reports

Apartment Demand in Southeast Markets Swells Ahead of Fading Supply Volumes

RealPage: “Apartment demand in the Southeast region of the U.S. surged to a record high in 1st quarter. At the same time, construction volumes are declining in the region.”

Commercial Real Estate and the Macro Economy

Signals on Private Real Estate amid Trade Turmoil

Via MSCI: “Between April 2 and April 8, the MSCI USA IMI Liquid Real Estate Index fell by 8.9% and even after the April 9 announcement of a tariff pause remained 4.6% down by the close of April 21. The indexes for the U.K. and Europe also posted notable declines, of 6.4% and 3.3%, respectively, but have since regained all lost ground.”

Other Real Estate News and Reports

Financial Market Volatility Casts Shadow on Capital Markets Recovery

Via Cushman & Wakefield: “In the near-term, investors should plan and strategize around the fact that Treasuries are likely to experience upward pressure. If the viability of the Treasury market were in question entirely, we wouldn’t be seeing evidence of persistent demand from recent Treasury auctions (as was the case this week for both 10Y and 30Y USTs).”

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