A new investor survey shows commercial real estate has reclaimed the top spot as the preferred asset class, reversing several years of hesitancy. After a long stretch of price discovery, investors appear increasingly convinced that repricing has created a compelling entry point relative to other asset classes.
The shift comes despite a tougher rate backdrop, with the Fed raising rates for the first time since 2023 and the 10-year Treasury trading above 5%. That tells us capital is looking past near-term financing costs toward reset basis, stabilizing fundamentals, and income durability in well-located assets.
For owners weighing a sale or a 1031 exchange, renewed investor appetite can translate into deeper buyer pools and more competitive bidding on quality product. For buyers, the window to acquire at today’s adjusted pricing may narrow as more capital returns to the sector, making underwriting discipline and early positioning more important than ever.