The scale and scope of the commercial real estate capital markets recovery continued to broaden in Q2 2021 with each region seeing a boost to activity. With many segments of the market exhibiting operational resilience, allocations to the real estate sector are still intact and strengthening further.
The increased competition and depth of capital targeting real estate are benefitting pricing and accelerating discovery in lagging segments of the market. Across sectors, the bid-ask spread improved considerably during Q2. Risk appetites are increasing for higher-risk strategies in the logistics and living sectors, while buyer and seller expectations for core and core-plus assets are now nearly aligned across sectors.
