Multifamily has shown an interesting pattern with importance beyond the category. Core and value-add metrics outperformed expectations in the third quarter of 2024 and core asset IRR targets rose as underwriting stabilized in Q4. CBRE reported “substantial movement” in unlevered IRR targets for core assets, which increased.

While they focused on multifamily, the performance of core capital has broader meaning, according to Cushman & Wakefield. Overall, core capital fundraising in 2024 tripled that of 2023.

“That’s right, annualized year-to-date core capital fundraising has rebounded, outpacing last year by a factor of three,” Abbey Corbett, senior economist and head of investor insights at the firm, said in a video. “To give you some context, closed-end funds have pulled in over $10 billion this year, compared to just $2.5 billion last year. This bounce back is significant because core capital is in many ways the tip of the proverbial spear, or the foundation of CRE capital flows.”