While once institutional allocations were weighted towards retail and office, they have responded to long-term structural shifts and refocused on industrial, multifamily and data centers.

Despite the hefty increases, some apartment owners say rents for many tenants remain below accepted affordability ceilings.

Unlike institutional players, TIC investors want passive income and long-term holds, which works better for the types of deals Investors Management Group pursues, says the firm’s founder.

Over 1,800 companies re-shored production in 2021, setting a new record for re-shoring activity, notes The Reshoring Initiative. These companies are looking for logistics facilities, warehouses and distribution sites.

Availability was close to 31 million sq. ft. in August 2022, according to real estate data fir CoStar. The last time there was close to this much empty space, office values plunged, causing billions in commercial real estate loans to sour.

Funds and REITs that built up massive war chests are taking steps to make deals despite current uncertainties over optimal real estate pricing.