Commercial Real Estate Bidding Sees Strongest Growth in a Year
Investor competition for commercial real estate reached its strongest monthly improvement in a year during June, according to JLL's quarterly bidding and credit indexes. The report highlights increased activity across the retail and industrial sectors, while multifamily remains weak due to oversupply issues. Despite high borrowing rates, liquidity has surged from various financial sources such as commercial mortgage-backed securities and insurance companies. This trend is attributed to strong investor confidence in real estate returns and a lack of significant distress or defaults observed post-pandemic. The credit intensity index shows signs of leading the bid intensity index due to improved availability. Retail sector interest, once weakened by e-commerce growth during the pandemic, has rebounded as owners hold onto properties for better yields. Industrial activity remains robust driven by reshoring and manufacturing expansion in response to supply chain concerns.
Topics: bidding credit activity industrial sector liquidity retail sector