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According to Altus Group Limited’s Q4 2023 CRE Industry Conditions & Sentiment Survey, a majority of senior commercial real estate professionals are planning to engage in transactions over the next six months. This follows a period of low transaction activity. The survey, which included responses from over 500 U.S. and Canadian CRE professionals at more than 100 firms, revealed that larger firms have higher transaction intentions.

Some key findings from the survey include:

– The cost of capital is expected to stabilize, but availability remains limited due to economic concerns.
– Industrial and multifamily properties are predicted to perform well in the next year.
– Target returns for gross IRR remain around 11% but vary by property type.
– Financing and cost considerations are top priorities for the upcoming year, with regulatory and political risks also emerging as important factors.

This data suggests that there will be an increase in commercial real estate transactions in 2024 as market conditions improve.