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 […]
Economic signals point to lower rates ahead
The last 12 months have been tough for commercial real estate investors. Many major markets have seen declining fundamentals and transition into the recession stage of the real estate cycle, as oversupply has driven vacancy, concessions, and declining rents. In the wake of higher interest rates and declining fundamentals, transaction volume remains at its lowest […]
No signs of interest rates reducing
Some syndicators will be waving banners this week shouting out that 100% bonus depreciation is back. It’s true, that if the Senate passes Trump’s “big beautiful bill”, bonus depreciation will be back and that may be a boon for Limited Partner investors and the capital raisers who seek to attract them. However the broader macroeconomic […]
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 […]
Underwriting in an Uncertain World
A number of factors continue to make it difficult to underwrite with certainty and find value in the current market. The Fed kept rates flat this month, based on the notion that inflation has settled in the 2.4% to 2.9% range. However, the long end of the yield curve remains elevated at 5.%, and suggests […]
Our 2025 Multifamily Outlook
It has been a rough couple years for multifamily investors in the wake to the Covid black swan, but 2025 is shaping up for the battered asset class to take revenge, and showcase its innate recession resistance, and once again provide investors with stable yield and long term growth.
Buy every deal that cashflows. Buy quality, late-model product, in good markets. Don’t over leverage and be aware of your prepayment penalties. Rates will come down; the new supply will get absorbed. Demand for rental housing will increase, driving rent growth. And demand for multifamily investments will increase, driving investment returns.
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.
Opportunity Knocks
Are we reaching the bottom of the market cycle? Trends seem to point towards some great opportunities in the short term for those that can spot the trends.
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 […]
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.