{"id":1004644161,"date":"2023-02-07T04:22:59","date_gmt":"2023-02-07T12:22:59","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004644161"},"modified":"2023-02-15T11:24:49","modified_gmt":"2023-02-15T19:24:49","slug":"sizing-up-cre-investments-plunge-cbre","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/sizing-up-cre-investments-plunge-cbre\/","title":{"rendered":"Sizing Up CRE Investment\u2019s Plunge: CBRE"},"content":{"rendered":"
\"Image<\/a>

Image by Gerd Altmann via pixabay.com<\/p><\/div>\n

If it feels like investment in commercial real estate is down\u2014a lot\u2014it is, according to fourth-quarter numbers in a new report from CBRE<\/a>. U.S. commercial real estate sales volume dropped by 63 percent year-over-year in the fourth quarter of 2022, to $128 billion.<\/p>\n

To put that in perspective, however, the fourth quarter of 2021 was stunning, approaching $350 billion in investment volume. In 2022 overall, CBRE reports, although volume fell by 17 percent to $671 billion from the record year of 2021, the 2022 total was still the second-highest annual amount on record.<\/p>\n

\n

READ ALSO<\/strong>: The Fed\u2019s Misguided Path on Interest Rates<\/a><\/p>\n

\n

More meaningfully, perhaps, the $128 billion in the fourth quarter just past was modestly below the average from 2015 through 2019, at $132.5 billion.<\/p>\n

\"Investment<\/a>

Investment volume by buyer type, Q4 2022 vs. Q4 2021. Chart courtesy of CBRE<\/p><\/div>\n

On the foreign investment side, incoming cross-border investment crashed by 81.3 percent year-over-year from $33.3 billion in Q4 2021 to just $6.2 billion in the fourth quarter of 2022. Foreign investors were net sellers by a ratio of $1.4 in dispositions for every $1 in acquisitions in 2022. CBRE cites a strong U.S. dollar and uncertainty about the overall economy as the main reasons.<\/p>\n

REITs, too, were net sellers in the fourth quarter, while institutional and private investors were net buyers.<\/p>\n

Products and places<\/h2>\n

Among asset classes, multifamily was the top sector in the fourth quarter, with $48 billion of investment volume, followed by industrial\/logistics at $32 billion and office at $19 billion.<\/p>\n

\"Top<\/a>

Top 20 markets for 2022 annual investment volume. Chart courtesy of CBRE<\/p><\/div>\n

On a trailing-four-quarter basis, Los Angeles was the top metro with $53 billion in volume, followed by New York with $51 billion. Interestingly, among the top 20 markets for CRE investments, only Nashville<\/a> had year-over-year growth (of 23.4 percent) from 2021 to 2022. Even New York and Los Angeles, with their big investment numbers and perennial appeal, saw sizable declines (on a trailing-four-quarter basis), of 6.1 percent and 12.1 percent, respectively.<\/p>\n

The largest percentage declines (on the same basis) were seen in Denver (39.1 percent), Boston (35.6 percent), Houston (29.0 percent) and Austin (28.4 percent).<\/p>\n","protected":false},"excerpt":{"rendered":"

Among the top 20 U.S. markets, only Nashville saw year-over-year growth in 2022.<\/p>\n","protected":false},"author":882,"featured_media":1004501071,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,21748,21783,23891,21742,21747],"tags":[32789],"class_list":["post-1004644161","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-industrial","category-investment","category-national","category-latest","category-office","tag-cbre"],"acf":[],"yoast_head":"\nSizing Up CRE Investment\u2019s Plunge: CBRE - Commercial Property Executive<\/title>\n<meta name=\"description\" content=\"U.S. commercial real estate investment dropped by 63 percent year-over-year in the fourth quarter of 2022, to $128 billion, according to CBRE.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/sizing-up-cre-investments-plunge-cbre\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sizing Up CRE Investment\u2019s Plunge: CBRE\" \/>\n<meta property=\"og:description\" content=\"U.S. commercial real estate investment dropped by 63 percent year-over-year in the fourth quarter of 2022, to $128 billion, according to CBRE.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/sizing-up-cre-investments-plunge-cbre\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2023-02-07T12:22:59+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-02-15T19:24:49+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/12\/Image-by-Gerd-Altmann-via-Pixabay.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"620\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Scott Baltic\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/sizing-up-cre-investments-plunge-cbre\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/sizing-up-cre-investments-plunge-cbre\/\",\"name\":\"Sizing Up CRE Investment\u2019s Plunge: CBRE - 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