Analyzing the 2021 CRE Investment Climate and the Impact for Investors

• Investment climate is very active with transaction volume through 3Q21 exceeding 2019 levels

• Self-Storage and Hotel investment lead the pack, but nearly all types of CRE outperforming

• Only Office, which still faces uncertainty has slower transaction velocity

• Elevated liquidity and access to affordable financing is empowering this strong activity

• Additionally, inflation concerns has brought new sources of capital to CRE, which tends to perform better than other asset classes in a high inflation environment

• This aggressive buyer demand has put upward pressure on prices and compressed cap rates

• Moving forward, strong momentum is expected to carry into 2022