SitusAMC’s latest quarterly report, titled Fog on the Tracks, reveals that commercial real estate (CRE) investors are pulling back on activity due to ongoing economic uncertainty and volatility in public markets. Despite this, the report notes that “certain indicators point toward green shoots on the track,” suggesting that some areas of recovery may be emerging.
The first quarter saw an improvement in investor sentiment toward CRE, as the asset class gained favor as a perceived safe haven amid equity market turbulence and policy changes announced in early April. The multifamily sector experienced a notable upswing, registering its strongest investor sentiment in more than a decade.
“The quarter’s findings illustrate a CRE market in flux,” said Peter Muoio, Head of SitusAMC Insights, who co-authored the report with VP Jen Rasmussen. “Investors are prioritizing resilience and stability as they navigate an uncertain market environment. Apartments stand out as a favored asset class thanks to limited supply and sustained demand. Meanwhile, office continues to struggle, though early signs of stabilization are appearing in some sectors.”
