Housing block in Warsaw, PolandBusà Photography | Moment | Getty ImagesA version of this article first appeared in the CNBC Property Play newsletter with Diana Olick. Property Play covers new and evolving opportunities for the real estate investor, from individuals to venture capitalists, private equity funds, family offices, institutional investors and large public companies. Sign up to receive future editions, straight to your inbox.After a pullback in commercial real estate activity earlier this year due to broad economic uncertainty, there are new signs that activity is on the move again. Capital is increasing and “bidder dynamics” are stabilizing, according to JLL’s global Bid Intensity Index, which saw improvement in July — its first since December. The index measures bidding activity in order to give a real-time view of liquidity and competitiveness in private real estate capital markets. That, in turn, is an indicator for future capital flows across investment sales transactions.It is composed of three sub-indices: Bid-Ask Spread: Final winning bid vs. the asking priceBids per Deal: Average number of bids per dealBid Variability: Pricing variability of final bidsThe stabilization in bidding dynamics comes as property sector performance fundamentals are holding up and asset valuations have generally held firm so far this year, despite weaker investor sentiment, according to the report.”With no shortage of liquidity, institutional investors are returning to the market with more capital sources and a renewed appetite for real estate,” said Ben Breslau, chief research officer at JLL. “While further recovery is expected to be gradual after moderating earlier this year, borrowing costs and real estate values in most markets have stabilized, so we expect momentum to pick up through the second half of the year.”Get Property Play directly to your inboxCNBC’s Property Play with Diana Olick covers new and evolving opportunities for the real estate investor, delivered weekly to your inbox.Subscribe here to get access today.Bid-ask spreads, the difference between the highest price a buyer is willing to pay for an asset and the lowest price a seller is willing to accept, are narrowing to more healthy levels across multiple sectors. …
