New data indicates a potential resurgence in commercial real estate activity following a period of decreased activity due too economic concerns earlier in the year.

According to JLL’s global Bid Intensity Index,capital is flowing back into the market and “bidder dynamics” are becoming more stable,with improvements noted in July. This was the first increase seen since December.

The index serves as a gauge of bidding activity, providing insights into the liquidity and competitiveness within private real estate capital markets. It is a leading indicator of future capital flows related to investment sales transactions.

The Bid Intensity Index comprises three sub-indices:

• Bid-Ask Spread: The difference between the final winning bid and the asking price.
• Bids per Deal: The average number of bids received for each deal.
• Bid Variability: The range in pricing among the final bids submitted.

The stabilization observed in bidding dynamics is supported by the solid performance of property sector fundamentals and the general stability of asset valuations throughout the year, despite a dip in investor sentiment, according to the JLL 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.”