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Commercial Real Estate Investment in U.S. to Increase 10 Percent in 2022

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According to a new CBRE market survey, U.S. commercial real estate investment has bounced back from COVID-19 pandemic, with investor demand reaching new heights and capitalization rates declining across the real estate spectrum.

The CBRE survey found that the industrial sector, driven by super-charged e-commerce and rent growth amid the pandemic, saw the most cap rate compression in 2021, regardless of asset class or risk profile. The multifamily sector also saw notable cap rate compression, particularly in the suburban segments. While this was likely attributable to more people migrating to the suburbs during 2020, many renters have now returned to urban neighborhoods, and occupancies there have largely returned to pre-pandemic levels.

Investors are expected to continue targeting real estate for attractive returns relative to other asset classes, and increasingly, as an inflation hedge. CBRE is…

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