This change marks a departure from the trend since mid-2022, where private buyers led acquisitions as REITs and institutional investors reduced their exposure.

Meanwhile, previously thriving markets like Atlanta and Phoenix experienced decreased transaction volumes due to the steady influx of new supply and stagnant rent growth.In the aftermath of the pandemic, institutional capital was in the spotlight, surpassing private-buyer activity as they outmatched lesser-known names while competing in the same arena.

Not to be left behind, institutional and public REIT investors persist in their pace of acquisitions, homing in on first-class developments and prime locations.Yields on stabilized industrial investments continue to price in a tight range over treasuries, which began falling in the fourth quarter due to slowing economic growth and the market's expectations of rate cuts beginning in the first half of 2024.Properties offering in-place rents substantially below market can still see cap rates in the upper 4% range, but a growing portion now trades in the low 5% spectrum.

We rent a four-bedroom house in Harwich, MA, as an STR.

Grocery-anchored neighborhood centers, on the other hand, are highly sought after and often command cap rates in the 6% to 7% range, with better quality assets pushing well into the 5% region.For example, institutional investment manager Nuveen acquired Peachtree Crossing in Atlanta for $21.8 million, or $270/SF, in January 2024.

Investment Info:

Single-family residence fix & flip investment in Wilbraham.

Purchase price: $215,000

Cash invested: $12,000

10 weeks project

What I have observed in Cities like Worcester, MA is that certain areas end up with more crime but it is very isolated. 

I could go into it in detail but essentially it would be too easy to launder money if they came from lending institutions that were not regulated by that nation's government.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $215,000

Cash invested: $75,000

Sale price: $385,000

10 weeks project

What made you interested in inv...

As a general contractor in Massachusetts, I'm looking to perform underwriting and pricing comparisons.