Gauging commercial real estate conditions and sentiment in Q2 2024

Our hosts, Cole Perry, Senior Market Analyst at Altus Group, and U.S. Director of Research, Omar Eltorai, share a brief analysis of the latest CRE Industry Conditions and Sentiment Survey. With over 600 respondents from the U.S. and Canada, this episode looks at the biggest shifts between the first and second quarters of 2024, including surprising trends in de-risking, cost of capital, and market expectations. Cole and Omar also discuss capital availability, property type performance, and the evolving role of artificial intelligence in commercial real estate.

Key moments:

01:06 - About the Commercial Real Estate Industry Conditions and Sentiment Survey

02:09 - Primary focus for CRE firms over the next six months

03:17 - Reported cost of debt financing in CRE

05:31 - Expectations for capital availability in the next 12 months

07:43 - Expectations for target returns by fund strategy

10:16 - Property type performance and expectations around property sectors

12:36 - Pricing perceptions for different property types

16:11 - Transaction intentions over the next six months

17:08 - Top priority issues CRE professionals are worried about

19:16 - Omar’s biggest takeaway - industry participants aligning with higher for longer

20:36 - Cole’s biggest takeaway - participants are still really worried about the cost of capital

21:46 - Cole’s biggest surprise - perception of artificial intelligence

23:48 - Omar’s biggest surprise - intention to transact vs. actual transaction activity

25:05 - How to access this quarter’s survey results

Resources mentioned:

US Q2 2024 Commercial Real Estate Conditions and Sentiment Survey -

https://www.altusgroup.com/featured-insights/us-cre-industry-conditions-and-sentiment-survey/

Canada Q2 2024 Commercial Real Estate Conditions and Sentiment Survey -

CRE Industry Conditions & Sentiment Survey - Canada | Altus Group Featured Insights

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