Things are starting to shake loose a bit in a CRE market, says Jones Lang LaSalle.
"JLL's proprietary Bid Intensity Index shows improved market trends since year-end 2022, despite the late summer run up in bond yields," the company wrote. "Bidding activity was on the rise in late 2023, with the average number of bids per deal increasing by 16%, narrowing the bid-ask spread."
"This reset in values will both challenge capital and catalyze liquidity," said Richard Bloxam, CEO of capital markets at JLL, in prepared remarks. "There is absolutely uniform understanding that pricing has changed. Given the quantum of dry powder, there will be a considerable first-mover advantage for capital that can deploy quickly and mobilize around opportunities as market fundamentals improve."
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