CBRE: $1.7 Trillion Coming Off The Sidelines And Into CRE This Year
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Investors are planning to pour hundreds of billions of dollars into commercial real estate this year, according to a CBRE survey.
Thanks to the country's strong economic growth and a positive investment outlook for the commercial property sector, the survey revealed that no less than $1.7 trillion worth of dry powder (cash reserves set aside for investment purposes) will hit real estate markets this year, driving global capital flows.
That is according to CBRE’s Global Investor Intentions Survey 2017, which said investors are optomistic about real estate's high income yield, particularly when it comes to office and logitics investment, eyeing North America as one of the most attractive markets.
Such large capital injections are likely to slow future fundraising efforts, National Real Estate Investor reports, with experts projecting it will take years to deploy the current capital. Fundraising fell from $739B in 2015 to $653B last year, and it is likely to continue to slide as core sectors begin to mature.