US Industrial and retail outperform over the next five years

In our recent real estate webinar, we showed that prices started to turn a corner. We predict industrial and retail will record the smallest value declines this year, and over the next five years, apartment and industrial are expected to record the strongest value growth on average. Both sectors are expected to reach their peak values of 2022 this decade.

What you will learn:

• Once the current pricing correction concludes this year, we expect all-property values will fall by 16%, peak to trough. But the timing and impact for each sector from the recent pricing correction differs.
• For office and retail, multiyear pricing corrections were marked by steep drops in values, while the pricing corrections for apartment and industrial were relatively shorter, at two years, and value declines were relatively smaller.
• Our US outlook calls for total returns to average 6% per year over the next five years. We expect industrial and retail to be the top-performing sectors and opportunities for stronger total returns will arise for apartments in 2025, once the effect from the recent supply surge winds down.