Commercial real estate (CRE) investment conditions have improved from the market’s recent reset, but the current environment is not yet strong enough to match the best-performing vintages of the past 25 years, according to Ryan Severino, chief economist and head of research at BGO, in his recent report.
Severino examines rolling five-year NCREIF Property Index total returns since the dot-com recovery to assess which macroeconomic conditions have historically produced the strongest commercial real estate performance. The analysis finds the best five-year return windows were not simply tied to strong GDP growth at the time of investment, but rather to reset pricing, low policy rates, a steep yield curve, stable economic growth and limited interest-rate shocks.
To read the full report, click here.
