Asaf Raz, Vice President of Marketing at Agora, recently conducted a survey among 250 general partner (GP) decision-makers to gain insight into the challenges of raising capital in the current commercial real estate market. The results revealed that while private equity remains a primary source for 21% of respondents, there is also an increasing reliance on alternative sources such as REITs and crowdfunding.
One surprising finding was that over 70% of firms raised $1 million or less in the past six months. This shows how smaller operators are adapting and remaining relevant in a challenging market through diversification and creative funding strategies.
Residential investments continue to be popular with 68% seeing higher returns from this asset class. As Raz explains, this includes all housing-related investments such as single-family homes, multifamily properties, and build-to-rent assets. Despite facing challenges like interest rates and financing options for build-to-rent projects are gaining attention from major players in the industry.
While traditional lending sources may become more appealing if interest rates decline further, it is likely that CRE will continue to rely on diversified funding sources due to their flexibility and tailored structures. Additionally
