M id A tlantic Real Estate Journal — Year in Review 2024 — December 2024 — 3B
www.MAREJ.com
Y ear in R eview 2024
Growth predictions in industrial, multifamily & investment sales signal optimism for 2025 CORFAC member survey shows steady deal activity as rates stabilize
s the year draws to a close, commercial real estate brokers are feel- ing renewed optimism about where the market is head- ing. CORFAC International’s second-half 2024 survey of members from 75 independent commercial real estate firms shows that transaction activ- ity remained stable across the global network in the latter part of this year. Members’ deal activity maintained an upward trajectory for 35% of respon- dents and held steady for 30% of respondents in the third and fourth quarters. Members also believe better days are ahead for CRE. COR- FAC members overwhelmingly agreed, at 61%, that stabilizing interest rates are having the most positive impact on their transaction activity. Respon- dents noted that they expect to see investment sales and multi- family activity increase over the next few months because of this. “In variable market condi- tions, CORFAC members can offer experienced, market- savvy counsel and tap into our expanded network to get deals done,” said 2024 President David Boyd, CCIM, SIOR, managing principal of Boyd Commercial/CORFAC Inter- national in Houston. “We are pleased to note that 29% of our members received a referral from another CORFAC firm in the last six months.” Positive Drivers of Activity The survey of firms from 40 markets around the world also revealed that the warehouse/ distribution and industrial/ manufacturing segments were the major drivers of business over the past six months. Look- ing ahead, 50% of respondents project that industrial will be their biggest driver of business in 2025. Other positive influences on transaction activity in- clude population migration to their markets (47%), em- ployer return to office mandates (29%) and positive employment trends (24%). Members also noted some microtrends for the region that are helping to boost activity. Said one member, “As popu- lation grows in our market, growth in services follows the trend.” This supports observa- tions of strengthening retail, including both mom-and-pop stores and regional grocers and convenience stores. Plus, medi- cal office leasing continues to be A
activity will begin to pick up and investment capital will come off the sidelines as rates stabilize. Some owners will need to make a decision about whether it’s the right time to sell, and buyers and sellers will need to draw closer on pricing than they were in 2024. Similarly, some busi- nesses will need to take stock of their office space needs and whether they’ll continue to offer hybrid options or require more days in the office. In all cases, it’s necessary to understand how macro trends are affecting local
markets and the importance of seeking guidance from qualified, experienced CRE brokerage experts. About CORFAC International CORFAC International is a global network comprised of privately held entrepreneurial commercial real estate firms with expertise in office, in- dustrial and retail brokerage, tenant and landlord repre- sentation, investment sales, multifamily, self-storage, ac- quisitions and dispositions, property management and corporate services. MAREJ
according to respondents. With the election having been decid- ed, some questions about future rates and tax policy have been answered. However, there is a question mark about the impact of potential tariffs on inflation and the cost of materials. Be Ready for 2025 As companies begin to think about their 2025 moves, COR- FAC member firms can offer clients trusted counsel and localized market intelligence along with the backing of an international network to navi- gate these dynamics. The expectation is that deal
a driver in the office subsector. Continuing Worries Around Inflation However, the headwinds haven’t entirely subsided, es- pecially when it comes to con- struction. Increased prices for materials (73%) and inflation (82%) continue to have the most negative effects on CRE decision making and activity,
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