- Fundraising for North American CRE fell to $80B in 2024, the lowest level since 2016 and a steep drop from 2021’s $155B peak.
- Core fundraising showed resilience with $9.5B raised, a record high. The un-invested capital stockpile is also shrinking, down 40% from 2022.
- These signs of recovery point to an eventual market rebound, especially for prime assets like trophy offices and net-lease properties.
Commercial real estate fundraising in 2024 shrank for the third consecutive year, with total North American capital raised down to $80B—far below the peak of $155B in 2021, per GlobeSt.
However, there’s a glimmer of hope in core fundraising, which reached an all-time high of $9.5B. According to Colliers research director Aaron Jodka, this mixed performance signals a potential turning point.
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Falling Fundraising
Pension funds, endowments, and institutional investors are cautious, waiting for clearer signals of market stabilization before committing capital. The drop in total fundraising from $155B in 2021 to $80B in 2024 highlights the ongoing uncertainty and conservative approach toward new investments.
Un-invested capital has also taken a hit, shrinking over 35% YoY from 2023 and dropping 40% from its 2022 peak. The most significant declines are seen in debt (down 51%), core plus strategies (down 59%), and distressed assets (down 70%).
Core Funding Growth
Despite the overall drop in fundraising, core funding raised $9.5B in 2024, marking a record high. This suggests that high-quality, low-risk assets continue to attract interest.
As competition among funds grows, prime assets like trophy office buildings, net-lease properties, and other best-in-class real estate could see renewed demand in the quarters ahead.
The fact that the number of funds seeking capital increased in 2024 indicates a potential turning point, with more funds looking to capitalize on opportunities as market conditions shift.
The Path Forward
Investors are likely to face additional market clearing in the near future, with debt maturities, distressed sales, and other market pressures driving activity.
While total uninvested capital has shrunk, strong capital positions could provide the momentum needed for a market rebound. In particular, funds that have extended their lives will likely put pressure on the sell side, increasing transaction volumes.
The report suggests that 2025 could be a stronger year for CRE, with improved market conditions driven by the ongoing recovery in the stock market.
