Among the five different asset types by strategy—prime or core, good secondary, value-add, opportunistic, and distressed—value-add remains the preferred strategy (39%) and at similar levels to 2016. Investors' appetite for good secondary (non-core) assets increased significantly in 2017, ranking second. This displaced core, which was ranked second-highest in 2016. The relatively diminished appetite for core product is attributed to a combination of low cap rates (which are not expected to get lower), weakening property fundamentals, and the search for higher yielding assets.

“E-commerce has helped fuel absorption and rental rate growth,” says Riley. “Several of the world's most respected brands such as Duracell, Williams-Sonoma and Wayfair have recently made long term commitments to the metro – we expect to see the continued influx of e-commerce tenants in the months ahead. As indicated in the recent investor intention survey, industrial product is the most sought after product type in 2017, leading capitalization rates in Atlanta to trade below 5%, as seen in other Tier 1 markets such as Chicago and Dallas.”

ATLANTA—The prospect of increased US economic growth combined with less regulation, means that investor sentiment for commercial real estate investment is marginally more positive than last year, despite the potential for rising interest rates. That's according to the CBRE Americas Investor Intentions Survey 2017.

The 2017 survey results reveal that investors will remain actively engaged in real estate investment this year, with 67% intending to be net buyers—more acquisitions than dispositions). The percentage of net buyers has increased since 2015 (60%) and 2016 (65%). Eighty-three percent of these investors intend to maintain or increase their purchasing activity in 2017.

Investors continue to be strongly interested in US gateway markets. Los Angeles maintained its position as the most preferred metro for investment in 2017, ahead of Dallas/Fort Worth and New York City. Washington, DC moved up the ranks from eighth to the fourth most preferred metro for investment in 2017. Atlanta, Seattle and Houston are also viewed as attractive markets for investment. The majority of investors are focused on real estate in the Americas and do not intend to make asset purchases in other regions of the world.

“Atlanta's industrial market has never been stronger,” Chris Riley, vice chairman of Industrial National Partners at CBRE, tells GlobeSt.com. “After 22 straight months of positive absorption, it is no surprise that Atlanta has risen to a top five preferred market for investment. Over the past three years, there have been 35 million square feet of deliveries versus 52 million square feet of positive net absorption. This imbalance of supply and demand has fueled record operating fundamentals in the Atlanta market.”

Among the five different asset types by strategy—prime or core, good secondary, value-add, opportunistic, and distressed—value-add remains the preferred strategy (39%) and at similar levels to 2016. Investors' appetite for good secondary (non-core) assets increased significantly in 2017, ranking second. This displaced core, which was ranked second-highest in 2016. The relatively diminished appetite for core product is attributed to a combination of low cap rates (which are not expected to get lower), weakening property fundamentals, and the search for higher yielding assets.

“E-commerce has helped fuel absorption and rental rate growth,” says Riley. “Several of the world's most respected brands such as Duracell, Williams-Sonoma and Wayfair have recently made long term commitments to the metro – we expect to see the continued influx of e-commerce tenants in the months ahead. As indicated in the recent investor intention survey, industrial product is the most sought after product type in 2017, leading capitalization rates in Atlanta to trade below 5%, as seen in other Tier 1 markets such as Chicago and Dallas.”