Cadre lists its top CRE investment markets in the US

The real estate management company Cadre has published its selection of the main CRE investment markets in the United States. Divided into three lists – multi-family, industrial and office – cities in the South and West took up a lot of space, being the majority in each of the categories.

Three Markets—Charlotte, North Carolina; Nashville, TN; and Raleigh, North Carolina – appeared in all three categories.

Others appeared on at least two of the lists: Boston, Massachusetts; Miami, Florida; San Diego, California; and Washington, D.C.

The choices were based on a combination of data-driven forecasts and professional experience in the markets. This combination is often suggested by experts in data analysis, because sometimes the information can seem to suggest a course of action, but knowledge of specific dynamics, history or other insights can sometimes detect a flaw in a subscription to a formula. However, there are times when relying on intuition rather than data-based warnings is a recipe for disaster in the making.

“As fundraising has skyrocketed and property prices have appreciated in recent years, private real estate has garnered interest as an alternative investment strategy. opportunities in markets with high growth potential,” the report states. “Frame’s MVPs place Charlotte, Raleigh and Nashville among the fastest growing cities in every asset class – multifamily, industrial and office.”

Cadre says he looks at historical returns, projected growth in two years and the potential for liquidity in each market, then has the listings managed by his investment team.

“This year, Cadre data revealed a number of timely themes driving growth in U.S. markets,” the company said. “For multi-family assets, Cadre is bullish on markets with sustainable employment and population growth where apartment rents are priced more affordably than the price of homeownership.” This strategy would ensure that the transition from renting to owning would be difficult and force more people to continue renting.

“In office, Cadre plans to focus on Southern growth markets where office utilization rates remain high,” the report adds. “Among industrial assets, Cadre focuses on critical sites that meet supply chain needs. Ultimately, these factors – in concert with broad swathes of transactional, demographic and fundamental data – highlight the major producers expected in US markets.

In all cases, however, cities in the South and West were strongly represented, perhaps because money and markets follow people, and there was significant movement of businesses and people to these regions.