CBRE Predicts Likely Upturn in Commercial Real Estate Investment in Second-Half 2024

(Image courtesy of CBRE)

CBRE, Dallas, released its U.S. Real Estate Market Outlook 2024, predicting that commercial real estate investment activity likely will begin to pick up in the second half of next year.

Hybrid working arrangements don’t seem likely to go away anytime soon, dampening office demand.

However, CBRE also pinpointed some markets to watch in the office space, including Nashville, Tenn., Miami and Las Vegas.

Retail real estate fundamentals are expected to remain strong. Markets to watch in the retail space were Orlando, Fla., Charlotte, N.C., Denver, San Francisco and Orange County, Calif.

Industrial and logistics space will be in demand in the year, with Central Texas, Nashville, Tenn., Salt Lake City, Louisville and Central Florida pinpointed as top markets.

Demand for new data center development also will attract investment in 2024, CBRE anticipated.

Top markets in that area are Northern Virginia, Dallas-Fort Worth, Atlanta, Chicago, Omaha, Neb., Austin-San Antonio, Charlotte, N.C., and Denver.

CBRE said new apartment supply will temper rent growth and improve affordability for renters through the year.

Top markets to watch in multifamily are the Midwest/Northeast as a whole, San Diego, Calif., Boston, New York City and Dallas.

The hotel industry will face some challenges, the report noted, such as competition from alternatives and a slower economy, but Americans also seem likely to travel less internationally–bolstering the domestic environment.

Top markets in hotels to watch are Los Angeles, San Diego,  Boston, New York and Washington, D.C.

More broadly, CBRE believed the U.S. has an increased chance of avoiding a recession and achieving the oft-cited “soft landing,” but noted that economic growth will continue to slow.