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CRE values will decline broadly, but notable opportunities exist
Investors - SEPTEMBER 18, 2023

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CRE values will decline broadly, but notable opportunities exist

by Lewis Dayton

There’s a perception that there are no transactions out there, but when you think about real estate activity over the last decade, 2023 is shaping up to be “more or less” the same as what we’ve seen over the past decade, said Cedrick Lachance, director of research at Green Street, in a recent Green Street webinar on the outlook for commercial real estate (CRE). The year-to-date (YTD) volume of transactions in 2023 is $137 billion, which is above the 10-year YTD average of $130 billion.

Lachance did point to the tightness in the lending market, which is having a meaningful impact on investment, transactions, refinancing and the commercial real estate market in general.

One of the reasons lenders aren’t more active, in addition to the tightness in the lending market, is because “assessed values of real estate are still detached from what is very likely the value of the real estate,” said Lachance. Green Street observed that the NCREIF NPI shows that the rea

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