**SitusAMC Report Signals Shifting Tides in Commercial Real Estate**
The latest edition of the SitusAMC ValTrends research report, titled *Tectonic Shifts*, indicates early signs of movement in the commercial real estate (CRE) market. The report highlights a potential plateau in cap rate expansion, an uptick in transaction activity, and a warming trend in loan originations — all occurring despite persistent high-interest rates and ongoing economic uncertainty.
According to the report, investors are maintaining strong interest in CRE, viewing it as a relatively safe investment compared to other asset classes. However, this interest is tempered by a growing reluctance to close deals. While the soaring stock market has drawn some capital back into equities, preference for bonds and cash has diminished.
“The CRE market is moving slowly, but there are also signs of momentum building under the surface,” said Jen Rasmussen, Vice President of SitusAMC Insights and co-author of the report. “Our analysis shows that dry powder is greatly elevated relative to deal activity. Investors are sitting on cash, waiting for opportunities to place it.”
The report was co-authored by Rasmussen and Peter Muoio, Head of SitusAMC Insights. It suggests that while the market has yet to fully accelerate, foundational changes are underway that could lead to broader movement in the coming months.
