SitusAMC Releases Commercial Real Estate Report Covering Valuation Trends, Space Market Fundamentals & Investor Sentiment Survey Data

New York, NY – SitusAMC is pleased to announce the release of its latest quarterly thought leadership report, ValTrends, offering data-driven insights and analysis on valuation trends and space market fundamentals, as well as exclusive survey data on investor appetites for commercial real estate. This quarter's report, titled Holding Pattern, shows how chaos in the capital markets is eroding sentiment for commercial real estate, with a record number of investors saying they would prefer to hold assets rather than buy or sell.

The report can be downloaded here: https://www.situsamc.com/valtrends4q22

The report, authored by Peter Muoio, PhD, Head of SitusAMC Insights, and Jen Rassmussen, PhD, Vice President, SitusAMC Insights, is the result of extensive research and analysis anchored in investor sentiment surveys, proprietary research, and third-party data. It offers a comprehensive view of the current state of commercial real estate valuations with a focus on:

• CRE Performance: Returns fell into negative territory in the fourth quarter and CRE yields over the 10-year Treasury are the narrowest since the Great Financial Crisis (GFC). Our on-the-ground intel suggests further retreat in valuations in the 1Q 2023.
   
• Capital Conditions: The availability of capital (equity and debt combined) dropped for the fifth consecutive quarter to the lowest level since the GFC.
   
• CRE Returns, Volume, Pricing and Perceived Risk: Total returns were also the lowest since the GFC, as was capital appreciation. Income returns were the second lowest in history. Meanwhile, the overall CRE market was perceived as increasingly risky throughout 2022.

“The first quarter of 2023 found investors waiting to see how higher interest rates and potentially slowing economic growth will change pricing, transaction activity and space market conditions,” Muoio said. “Transactions have stalled, and the few that have occurred are skewed in a dumbbell pattern -- distress and special-story high valuation properties -- providing little guidance on where prices stand.”

Meanwhile, space market fundamentals for most segments have not shifted much. “We are some segments that are very healthy and others floundering from longer-standing problems,” Rasmussen said.

The report also provides an in-depth assessment performance data for the apartment, industrial, retail, office and hotel sectors, including total return, occupancy change, and rent growth, as well as (anonymized) commentary from institutional investors. It is designed to provide commercial real estate market participants with the actionable intelligence they need to make informed decisions for their investments and stay ahead of the curve.

The release of this thought leadership report underscores SitusAMC’s commitment to powering the lifecycle of real estate finance. The analysis and insights provided in this report are invaluable to those seeking to stay informed and competitive in today's fast-paced business environment.

The report can be downloaded here: https://www.situsamc.com/valtrends4q22

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About SitusAMC

SitusAMC (www.situsamc.com) is a leading independent provider of technology, strategic outsourcing, talent and advisory solutions to the commercial and residential real estate finance industries. The company helps clients identify and capture opportunities in their real estate businesses through industry-leading services and innovative technologies that drive operational efficiency, increase business effectiveness, and improve market agility across the entire lifecycle of their global real estate activity.

Press Contact:

Andy Garrett
Head of Marketing
andygarrett@situsamc.com