Commercial real estate (#CRE), like the economy as a whole, is cyclical, which can take a toll financially and emotionally on everyone. Past economic cycles have shown that what goes down should eventually rise. From previous declines to recessions, the office CRE sector has consistently regained its footing.
“Looking back at various downturns in economic cycles, you’ll note the predictable fleeing from various asset classes that followed,” says Marc Deluca, KBS CEO and regional president, Eastern U.S. “But whether it was the overbuilding in the ’90s and the financial crisis, the dotcom bust, or 9/11, time after time again, those classes of real estate ultimately came back — sometimes in roaring fashion.
The million-dollar question right now is, ‘is office dead.’ But by understanding the cyclical nature of the economy — and the emotional lifecycle of commercial real estate — it allows those of us in the industry not to hit the panic button, but rather, put the current situation into historical context.”
In this first of a two-part KBS insights series on the emotional lifecycle of CRE, we explore the causes of economic cycle downturns. Stay tuned for Part 2, where we’ll discuss the recovery ahead.
Read the full blog article below:
https://lnkd.in/gdHMFcjK
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Retail x Mixed-Use Development Consultant with 26 Years of Results
3moAce Roman - good stuff!