Global Property Investors to Increase Commercial Purchase Activities in 2018

CBRE's 2018 survey reveals that the balance between those investors planning to spend more on commercial real estate over those planning to spend less is 33%-up from 24% last year and reversing a three-year trend in the other direction. The balance of investors planning to sell more real estate over those planning to sell less rose to 27% from 15% in 2017, signaling a potential increase in market liquidity. "Investors are taking advantage of the current strength of the market to diversify and make necessary changes to their portfolios. Planned acquisitions will be balanced by disposals, which is healthy for the marketplace and is likely to ease downward pressure on cap rates. While investors remain interested in core and gateway markets, they are also willing to go beyond in search of income and are targeting emerging real estate sub-sectors, such as retirement and student housing. This is positive for portfolio returns and also ensures that capital meets the needs of a changing society," said Chris Ludeman, Global President, Capital Markets, CBRE.