Compared to 2023, senior managing director Eric Enloe at Partner Valuation Advisors sees commercial real estate transactions increasing. Although Enloe doesn’t expect much change in interest rates or the 10-year Treasury, “I see it’s stabilizing, and if it’s stabilizing you’re going to see more transaction activity.”
The increase in transaction activity will vary by sector, Enloe pointed out. Retail has been surprisingly strong, while in office, “you’re likely to see distress.”
Both Enloe and Steve Pumper, executive managing partner of Transwestern’s Capital Markets and Asset Strategies Group, believe that when all is said and done, 2023 will represent a falling-off in deal activity compared to 2022. “In the second half of the year, I expect it to be very similar to the first half,” when volume was down 60% on a year-over-year basis.
In the video below, you’ll get more insights from Enloe and Pumper, who went before Connect CRE’s cameras at the recent Connect Investment & Finance 2023 event.