SK Kettarn’s Post

Knight Frank update: 2024 shaping up to be a better year for commercial property investors: According to the latest research from Knight Frank, 2024 is on track to be a more... https://bit.ly/3VXmiGm

Now is the time to buy commercial property, with the market poised for a multi-speed recovery to commence in mid-2025, according to Knight Frank's outlook report, which forecasts trends for the commercial property market next year. Knight Frank’s Australian Horizon 2025 report found while some segments of the market still had further to go in terms of pricing readjustments, well-located core assets have now largely repriced after a downturn lasting two and a half years, and are at a cyclical low. Knight Frank National Head of Institutional Sales and Capital Advisory Ben Schubert said that after taking a period of time to reappraise their strategy over the past three years in which values have corrected, investors were poised to re-enter the market. “The Australian commercial property market now represents good value for investors, and the obstacles to investing are subsiding,” he said. Ben Burston https://lnkd.in/gWcxZ2CK #KnightFrankAustralia #CommercialProperty #Insights #PropertyNews

There has been a significant amount of discussion this year, including from us, regarding the potential turning point for the UK commercial real estate investment market and the expected increase in yields. Many experts believe that this turning point will come when the Bank of England starts regularly reducing interest rates, making debt more affordable and expanding the pool of potential real estate investors. As a result, sellers will feel more confident in releasing assets to the market, with a larger number of buyers ready to compete and secure the best prices. While the timing of this turning point is crucial, the speed of the market recovery is equally important, yet often overlooked. This is especially vital for opportunistic buyers who rely on acting swiftly before yields become too high. Looking at past cycles, it is notable that commercial property yields can harden rapidly once the market starts to shift.

Respondents in the Real Estate State of the Market Survey continue to believe private equity investors will be most active in the US through the next 12 months with investment rising from family offices. Download the full report: https://lnkd.in/ew69_emd #CRE #realestate #DLAPiperstateofthemarket

There has been a significant amount of discussion this year, including from us, regarding the potential turning point for the UK commercial real estate investment market and the expected increase in yields. Many experts believe that this turning point will come when the Bank of England starts regularly reducing interest rates, making debt more affordable and expanding the pool of potential real estate investors. As a result, sellers will feel more confident in releasing assets to the market, with a larger number of buyers ready to compete and secure the best prices. While the timing of this turning point is crucial, the speed of the market recovery is equally important, yet often overlooked. This is especially vital for opportunistic buyers who rely on acting swiftly before yields become too high. Looking at past cycles, it is notable that commercial property yields can harden rapidly once the market starts to shift.

"From about 2011 on, making money in real estate was a given. The next person in line could always finance a deal at a lower interest rate and, therefore, pay a higher price." - Jim Costello, MSCI This article from Bisnow makes a good argument for the shifting fundamentals in the real estate market. Without the tailwind of falling interest rates, real estate investments are going to require higher returns and more sophisticated operators to execute on solid business plans to create value. https://lnkd.in/eJQG_ymp

CRE investments are known for their historically stable, long-term income through leases. With the recent Fed rate reduction in Sept., CRE’s predictable cash flow are starting to become more appealing to investors again. This could present timely opportunity for strategic real estate investments. Find more details from the HM Secure team in the article here

Capping off our global Real Estate Summit in Chicago, the DLA Piper 2024 State of the Market Survey is essential reading. Commercial real estate industry leaders report measured optimism. #DLARESummit #DLAPiperstateofthemarket

Investment in commercial real estate has been down in 2024, but with more certainty from the election results and falling interest rates, activity is expected to come back in a big way, reported Bisnow. "In the third quarter, investment in nondistressed assets totaled $40.1B across 9,467 properties, down from $44.4B across 10,523 properties in Q3 2023, according to a report released last week by Altus Group. The number of transactions through the first nine months of this year was at the lowest level since 2011." https://lnkd.in/gmXHS6Pm #unitedstates #CRE #investment #sales 

Respondents in the Real Estate State of the Market Survey continue to believe private equity investors will be most active in the US through the next 12 months with investment rising from family offices. Download the full report. #CRE #realestate #DLAPiperstateofthemarket