In its mid-year commercial real estate outlook, JP Morgan stated that multifamily, industrial, and neighborhood retail are performing well.
Analysts
at JP Morgan believe geopolitical tensions, market volatility, and high
inflation will remain prominent for the second part of this year.
- The
report pointed to the lack of clarity on whether rates will continue to
rise in the second part of this year as the primary reason for
investors' uncertainty.
- The vacancy rate at multifamily properties has dropped from 4.5% at the end of last year to 3.9% in April.
- The
e-commerce industry and the need to optimize logistics for on-demand
delivery, which powered the industrial asset class, have softened.
- The industrial vacancy rate increased by ten basis points in Q1 of 2023.
- JP
Morgan urged investors to capitalize on opportunities, such as agency
lending, innovative proptech, and rent payment technology, in the year's
second half.
