Marcus & Millichap (NYSE:MMI), a leading commercial real estate
investment services firm with offices throughout the United States and
Canada, reports that commercial investor sentiment remains near an
all-time high. The firm’s commercial Investor Sentiment Survey Index is
calculated quarterly and rose three points to 179 in the third quarter,
up slightly from first quarter 2014.
Marcus & Millichap reports 70 percent of commercial real estate
investors who were surveyed plan to increase their commercial holdings
over the next 12 months. An additional 24 percent expect investments to
remain the same, and four percent expect their real estate portfolio to
decrease over the next year.
“The Index is at such high levels currently that even if it hovers at
this same range, it is a reflection of further occupancy increases, rent
growth and value gains,” says Hessam Nadji, chief strategy officer with
Marcus & Millichap. “The fact that commercial real estate investor
sentiment remains high is due in large part to the very attractive
yields the commercial sector is delivering compared to alternative
assets,” Nadji continues. For a decade the Investor Sentiment Survey
Index has been a reliable leading indicator of the broader economy.
“Based on its track record, this reading should result in further
strength in the commercial real estate sector into the coming year,”
concludes Nadji.
“Investors are looking at commercial real estate and recognizing an
opportunity to borrow at a very low cost during a time when there is
plenty of room for improvement in the financial performance of the
asset,” added William E. Hughes, senior vice president of Marcus &
Millichap Capital Corp.
With a tremendous recovery already in its wake, the apartment sector
leads the way in confidence among sectors, reporting expectation of a
5.8 percent rise in value over the next year. In the hotel sector,
nearly two-thirds or 62 percent of respondents reveal expectations for
hotel values to increase over the next 12 months by an average of 5.3
percent. The industrial sector shows 69 percent of industrial investors
anticipate that the value of their properties will increase, with an
average 4.6 percent improvement expected.
For complete access to Marcus & Millichap’s complimentary Investor
Sentiment Survey Third Quarter 2014, please visit: http://bit.ly/1sQrdpl.
To view a recent national television with interview with Marcus &
Millichap’s chief strategy officer as part of a panel of experts
discussing the U.S. economy, real estate and stock market trends, and
the latest reading on commercial real estate investor sentiment and its
correlation to job growth and capital flows expected through the coming
year, visit: http://bit.ly/1tWME3u.
About Marcus & Millichap (NYSE: MMI)
With over 1,300 investment professionals located throughout the
United States and Canada, Marcus & Millichap is a leading specialist in
commercial real estate investment sales, financing, research and
advisory services. Founded in 1971, the firm closed over 6,600
transactions in 2013 with a value of approximately $24 billion. The
company has perfected a powerful system for marketing properties that
combines investment specialization, local market expertise, the
industry’s most comprehensive research, state-of-the-art technology, and
relationships with the largest pool of qualified investors. To learn
more, please visit: www.MarcusMillichap.com
Copyright Business Wire 2014