Mixed Signals in the Economy: What it Means for Real Estate Investors
We continue to get mixed messages about the state of the U.S. economy. On one hand, the Federal Reserve lowered the Fed funds rate by 25 basis points this month and signaled the potential for further cuts. Current expectations are for as many as three more 25-basis-point reductions before year-end. Unsurprisingly, many real estate investors […]
Is Oil Telling Us a Recession is Coming?
One of the most reliable early-warning indicators of economic trouble is falling oil demand—and right now, that signal is flashing yellow. As passive real estate investors, we may not trade commodities or watch energy markets closely. But oil is a core input to nearly every economic activity—from shipping and trucking to manufacturing and travel. When […]
Reading the Signals: What’s Really Pressuring the Multifamily Sector Right Now
We’re dealing with a pretty unusual mix of political, labor, and economic signals at the moment. It’s been a challenging environment to read, but a few key patterns are starting to emerge. Here’s a quick breakdown of the themes we’re watching most closely. Political Pressure Is Starting to Reshape Demand and Labor Immigration has been […]
What Comes Next?
More rate cuts, Quantitative easing, and maybe even stimulus checks After the fastest pace of interest rate hikes in U.S. history, we finally got our first rate cut in September. The 50bps point cut represented a distinct pivot from the Fed’s previously hawkish and resilient position. Many critics of the move pointed out that Inflation […]
Unemployment, Layoffs and the Impact on Multifamily
Last week the Bureau of Labor Statistics (BLS) updated their estimate of how many jobs were created in the country this year, and they revealed that the figure was 818,000 jobs lower than initially indicated. The report marks the largest downward revision since 2009 and suggests that the labor market began losing steam earlier than […]
Navigating Real Estate Investments: The Critical Role of Local Supply Trends
Investing in real estate requires a keen understanding of local supply trends, which play a pivotal role in determining the potential success of an investment.
Lies, Damned Lies and (Unemployment) Statistics
Official unemployment statistics ado not tell the full story. What investors should know about unemployment and the state of the economy.
A deep dive into how to make smart investments
Many of us are searching for good investment opportunities in commercial real estate. While I believe the first quarter of 2024 will be relatively slow, investment opportunities should improve in Q2, driven by debt maturities and improving sentiment in capital markets. That means that now is a good time for passive investors to get back […]
Strategic Use of Debt in Real Estate Investing: Balancing Risk and Reward
When using debt, there are enhancements and tactical choices that can be made to improve the risk-return profile of your deals. Having a detailed understanding of the debt market will allow you to choose the best debt product, with the right enhancements, provided by the best partners to work with.
Catching falling knives: When to buy in a declining market
2023 has been a difficult year to find new real estate investments, and the market is struggling to reach price discovery amongst rapidly changing market conditions. 2024 may be the time to start looking for opportunities that others may be overlooking.