AIF Altus Group Limited

Altus Group (TSX: AIF), a leading provider of asset and fund intelligence for commercial real estate (“CRE”), today released the findings from its Q4 2024 CRE Industry Conditions & Sentiment Survey, a quarterly survey that collects insights on current market conditions and future expectations. The latest survey draws on feedback from 390 seasoned CRE professionals representing over 129 firms in the U.S. and Canada from October 9 to November 5, 2024.

The Q4 2024 CRE Industry Conditions & Sentiment Survey highlights participants’ perspectives on several topics, including:

• Operating environment expectations: the majority of respondents (69% in the U.S. and 63% in Canada) described the near-term operating environment as “somewhat challenging”, largely unchanged from past quarters in 2024.

• Current focus areas: managing existing portfolios remained the current focus for majority of respondents for the next six months, followed by deploying capital.

• Near-term transaction intentions: a significant majority of respondents signalled intent to transact over the next six months. In the U.S., 90% of respondents indicated intent to transact, compared to 79% in the prior year’s survey. In Canada, it was 77% compared to 67% in the prior year.

• Perception of pricing shifts: across most property sectors in the U.S., participants increasingly described current pricing as being “priced about right.” Meanwhile in Canada, respondents still characterized much of the market as “overpriced”, though noted pricing improved for certain property types.

• Property performance expectations: multifamily and industrial asset classes continued to be top ranked, with data centers surging into first place in the U.S., while the outlook for office remained bleak.

• Priority issues: the cost of capital as influenced by interest rates remained as the top concern for the next twelve months.

“The fourth quarter survey results tracked closely with the prevailing capital market sentiment throughout most of 2024,” commented Omar Eltorai, Director of Research, Altus Group. “There’s a clear sense of growing optimism, driven by lower interest rates and a narrowing bid-ask gap between buyers and sellers. However, it will take time for this optimism to translate into market activity. The CRE market is in the process of thawing; we’ll gain a clearer picture of how quickly this recovery will progress throughout the year.”

To download the full reports by country, please use the following links:

• U.S. Q4 2024 CRE Industry Conditions & Sentiment Survey
• Canada Q4 2024 CRE Industry Conditions & Sentiment Survey

About Altus Group

Altus Group is a leading provider of asset and fund intelligence for commercial real estate. We deliver intelligence as a service to our global client base through a connected platform of industry-leading technology, advanced analytics, and advisory services. Trusted by the largest CRE leaders, our capabilities help commercial real estate investors, developers, lenders, and advisors manage risks and improve performance returns throughout the asset and fund lifecycle. Altus Group is a global company headquartered in Toronto with approximately 1,900 employees across North America, EMEA and Asia Pacific. For more information about Altus (TSX: AIF) please visit altusgroup.com.

FOR FURTHER INFORMATION PLEASE CONTACT:

Elizabeth LambeDirector, Global Communications, Altus Group(416) 641-9787 Elizabeth.Lambe@altusgroup.com