RCM survey participants were asked how a proposed or potential interest rate hike would impact their outlook for acquiring properties—the Federal Reserve had yet to raise rates by a quarter percentage point when he RCM survey was conducted. Perhaps in part because rates continue to be at historic lows, 54% of survey respondents didn't think it would make a difference. When the respondents were classified as either buyers or sellers, a slightly larger number of buyers, 56%, said a rate hike would have no impact, while 51% of sellers expressed no difference.

Survey participants were asked to identify which events/issues were influencing their position and a potential change. The outcome of the presidential election was not weighing heavily on the minds of most: 56% cited general concern for the US economy, while 34% specifically cited the US interest rate climate. Just 19% had concerns over the US election. Another 20% cited a variety of “other” reasons as influencing their decision, while 12% percent cited foreign events such as Brexit and/or economic conditions in China.

Overall, RCM says the mood expressed by the responding principals was positive, notwithstanding economic uncertainty and any lingering unsettledness in the markets due to the US presidential election. “The US continues to be viewed as a safe haven for commercial real estate investment,” says Tina Lichens, COO at RCM. “There is a lot of capital flowing through the U.S. from foreign and domestic sources, with many markets seeing a shortage of supply of quality assets.”

Lichens says the key takeaway from the investor sentiment survey is that the middle market, defined as transactions between $30 million and $100 million, is hot, with a greater velocity of deals and more investors than the over-$100-million category. The activity in this segment is being driven by yield, which on cash leveraged deals is very attractive when compared to alternative investment choices, she adds.

CARLSBAD, CA—Heading into 2017, the majority of commercial real estate investors are in a buying mode, says Real Capital Markets. The national investor sentiment survey, which found that 70% of respondents seek buying opportunities across US markets, cited multifamily as the primary asset class they're after, followed by industrial, retail and office.

“Investors are still aggressively looking for acquisitions and intently focused on keeping the course with tried and true property sectors,” says Steve Shanahan, executive managing director with RCM. “Many investors remain optimistic in spite of economic conditions, potential interest rate changes, as well as domestic and international events that could impact short-term activity.”

The survey was conducted last month among several hundred investors. Respondents ranged from leaders of global capital markets investment firms to principals from entrepreneurial agencies and private family offices. Some are involved in more than 100 transactions per year, while others generally complete 10 or fewer transactions annually.

Nearly 75% of respondents favor value-add, although the survey also identified something of a tendency back to core opportunities. Opportunistic was the next most popular investment objective, cited by 38% of respondents. Just 16% listed core properties as their objective and double that number, 33%, cited core plus.

RCM survey participants were asked how a proposed or potential interest rate hike would impact their outlook for acquiring properties—the Federal Reserve had yet to raise rates by a quarter percentage point when he RCM survey was conducted. Perhaps in part because rates continue to be at historic lows, 54% of survey respondents didn't think it would make a difference. When the respondents were classified as either buyers or sellers, a slightly larger number of buyers, 56%, said a rate hike would have no impact, while 51% of sellers expressed no difference.

Survey participants were asked to identify which events/issues were influencing their position and a potential change. The outcome of the presidential election was not weighing heavily on the minds of most: 56% cited general concern for the US economy, while 34% specifically cited the US interest rate climate. Just 19% had concerns over the US election. Another 20% cited a variety of “other” reasons as influencing their decision, while 12% percent cited foreign events such as Brexit and/or economic conditions in China.

Overall, RCM says the mood expressed by the responding principals was positive, notwithstanding economic uncertainty and any lingering unsettledness in the markets due to the US presidential election. “The US continues to be viewed as a safe haven for commercial real estate investment,” says Tina Lichens, COO at RCM. “There is a lot of capital flowing through the U.S. from foreign and domestic sources, with many markets seeing a shortage of supply of quality assets.”

Lichens says the key takeaway from the investor sentiment survey is that the middle market, defined as transactions between $30 million and $100 million, is hot, with a greater velocity of deals and more investors than the over-$100-million category. The activity in this segment is being driven by yield, which on cash leveraged deals is very attractive when compared to alternative investment choices, she adds.