Our third annual Global Investor Outlook report explores investor sentiment, asset class preferences, opportunities and strategies in 2023. Our findings are based on numerous in-depth interviews with our Capital Markets experts and survey of more than 750 investors around the world.
After a volatile year of geopolitical tensions, economic shocks and uneven monetary policy, Colliers anticipates the process of stabilization of the global real estate market to take hold by mid-2023. Investors can expect big differences in how the reset plays out across sectors and markets next year. Read the 2023 Global Investor Outlook here.
Key 2023 Americas themes:
- Multifamily is the most sought-after asset class, overtaking industrial.
- Central Business District (CBD) office investors are focused on top-rated, Environmental and Social Governance (ESG)-compliant assets.
- Industrial investors are seeking last-mile distribution properties.
- Grocery-anchored centers remain the top destination for retail capital.
- Luxury hotel assets are still the preferred target for hotel investors.
- Life science, data centers, and student housing remain the top alternative asset classes.
- Investors are concerned about the cost of capital, the impact of inflation, cybersecurity, and talent availability.
Global themes:
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The journey so far suggests global real estate market stabilization to take hold mid-2023. But the velocity and timing of stabilization, repricing and recovery will differ across markets and sectors, creating multiple investment opportunities.
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Pockets of opportunity exist amidst the current reset as the negative impact on capital values will cause distress among some funds and assets that require refinancing.
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Understanding and managing rising cost pressures is critical. 85% of investors said rising construction costs have the most negative influence on their ability to pursue their investment strategies, followed by higher asset operating costs (77%).
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Core assets to prevail but non-core will be a source of some distress. 60% of global investors prefer asset classes in established, larger cities, but changing demographic and economic realities are luring them to second- and third-tier growth cities.
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Sustainability is driving decisions as the threat of stranded assets looms. 17% of investors are activating a capital improvement, disposal or acquisition strategy that incorporates ESG considerations, up from 10% in 2022.
