CORFAC News

Transaction activity is trending positively for members of CORFAC International’s global commercial real estate network. Deal activity over the past six months increased for 42% of members who responded to the 2024 Spring Market Survey and remained steady for 31% of respondents. Less than a quarter of members who responded said transaction activity had slightly decreased so far this year.

More than 51% of respondents reported in-bound referrals from existing clients or local allied service providers, reflecting CORFAC member firms’ strong reputation for service and local market expertise – even during times of market volatility. In addition, nearly one-third of respondents reported transaction activity that originated as a referral from a fellow CORFAC member. 

“We’re pleased to hear from our members that deal volume is trending positively and that referrals continue to be an important source of new business,” said 2024 President David Boyd, CCIM, SIOR, Principal of Boyd Commercial/CORFAC International in Houston. “Our network is built the valuable cross-market connections between members, their clients, and trusted local service providers.” 

Industrial Continues to Drive Business
Segments of the industrial sector continue to generate the greatest share of business activity for respondents, with 62% citing warehouse/distribution as a top driver and 58% citing industrial/manufacturing. Office transactions, investment sales and retail deals rounded out the top five sectors fueling the pipeline for member firms. 

The top three factors positively influencing local CRE market activity include in-bound population migration, employers’ return to office mandates, and stabilizing interest rates. Unsurprisingly, inflation and still-high interest rates are having the most negative effects on transaction activity, according to the majority of respondents.

Bright Spots Amid Concerns
The growth of healthcare-related real estate is a cause for optimism, according to several survey respondents. “Our corporate healthcare clients have remained active and somewhat recession-proof,” said one respondent. Another respondent cited a $24 million CORFAC member-to-member referral as a highlight of the past six months. 

However, the time required to “work through” deals is an issue of growing concern. “Transactions seem harder to conclude and each project needs more time and effort on our side,” said a respondent. Another respondent echoed the sentiment: “Deals seem to be dragging on longer than ever before. Clients are waiting for ‘things to get better’ to make decisions.”

With real estate transactions taking significant time and effort to conclude in the current market conditions, companies need advisors who can expertly navigate their local markets and bring buyers and sellers to a satisfying agreement.