Fear of widening losses in the commercial real estate market has been a top concern with investors, according to Bank of America Corp.’s latest Global Fund Manager survey. In that heightened risk, though, a growing number of investors are looking to deploy capital. Story by Scott Carpenter https://lnkd.in/eeB6jZSx #CRE #commercialrealestate
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Distressed CRE Assets Trigger Big Moves from Investors For the past year, we’ve seen a lot of predictions in commercial real estate (CRE) around the looming “wall of debt” facing commercial assets. Many owners face a difficult refinancing environment as their loans come due, and NAI Global’s Arthur Milston previously predicted a wave of distressed assets that would hit the market in 2024. As we are into the second quarter of the year, that prediction is playing out in real-time as investment firms across the U.S. gear up to take advantage of the distressed asset influx. To learn more, read our latest blog HERE: https://lnkd.in/eQeY_gsK #TheNAIDifference #NAIMopperBenton #CRE #CommercialRealEstate #SavannahRealEstate #GeorgiaRealEstate #CREInvesting
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Home REIT shareholders left in limbo as legal troubles threaten capital returns. Oli Creasey CFA. News of a proposed wind-down for the troubled investment trust Home REIT has brought shareholders closer to an exit after a turbulent two years, but legal troubles may hinder the prospect of capital returns. Check out Valeria Martinez's latest article 👇 https://incm.pub/4bJTPrM #investing #assetmanagement #wealthmanagement #finance
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Per the chart, CRE bidding activity was on the rise in late 2023, with the average number of bids per deal increasing by 16%, narrowing the bid-ask spread. A shout out to Richard Bloxam and his team for producing this article... Strong summary of the current state of the CRE Capital Markets. Below are key excerpts: By the end of 2025, $3.1 trillion of real estate assets globally will have maturing debt. The current refinancing shortfall for these loan maturities is an estimated $270-$570 billion, which will catalyze transaction activity and provide a clear first-mover advantage for well capitalized investors in 2024. The dry powder for CRE now totals $402 billion sitting on the sidelines. #capitalmarkets #investmentsales #commercialrealestate #realestateinvestment #realestateinvesting
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What's the trend in commercial real estate? * Commercial property values have fallen 21% on average since the Fed began raising interest rates two years ago.....most of those buying up 'bargains' are family offices/private investors who often make the boldest steps first....and get the best buys, not only price-wise, but they also have more choice. They tend to own assets for longer and are more focused on creating generational wealth than hitting strict return hurdles like larger institutional investors. (WSJ) #commercialrealestate #commercialproperties #realestate
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The perception is so negative and yet the value decline has occurred, so when you get into this bottoming period that’s when you want to move,” Blackstone Inc. President Jon Gray told Bloomberg. Competition to buy discounted assets hasn’t been great so far, he said, adding that there will be a strong need for new capital as financial institutions begin realizing losses from loans that were made when borrowing costs were much lower. While Gray sees a wave of buying opportunities as some banks and even insurance funds may have to sell at discounts, the scale won’t be as bad as it was during the financial crisis, he said. Keep in mind, this news is directed to the US market which has deviated from its similarities to the Canadian real estate market since covid. Drop me a line if you would like to discuss this more in detail and explore if now is truly the right time to buy... for you! Read full article here: https://bit.ly/3KF9pty #jarrydpintorealestate #jpre #remaxagent #realtor #realestateagent #vancouverrealtor #vancouverbc #propertyinvestment #canadarealestate #vancouverrealestate #investment #realestatedevelopment #highrise #explore #bnn #realestatearticle
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We've all been hearing about the great collapse of commercial real estate that's on the horizon. Here's where we are: Commercial property values have fallen 21% on average since the Fed began raising interest rates two years ago.....most of those buying up 'bargains' are family offices/private investors who often make the boldest steps first....and get the best buys, not only price-wise, but they also have more choice. They tend to own assets for longer and are more focused on creating generational wealth than hitting strict return hurdles like larger institutional investors. (WSJ)
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More positivity coming out of this Partner Valuation Advisors market survey for transactional volume and asset values. Stronger sentiments than anticipated on the 2025 increase in transactional volume and increase in asset values. Thrilled to have the PVA national platform in the Partner Engineering & Science, Inc. due diligence bundle and complimenting our support to the asset management side. Poised, in-tune, and ready!
We recently polled the commercial real estate industry about asset values and transaction volume in 2025. Check out this video to hear the good news about how capital is expected to come off the sidelines and further fuel transactional activity across the CRE investment spectrum, especially now that the Federal Reserve has started lowering interest rates. #CRE #investment #interestrates
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We recently polled the commercial real estate industry about asset values and transaction volume in 2025. Check out this video to hear the good news about how capital is expected to come off the sidelines and further fuel transactional activity across the CRE investment spectrum, especially now that the Federal Reserve has started lowering interest rates. #CRE #investment #interestrates
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Partner Valuation Advisors polled the commercial real estate industry about asset values and transaction volume in 2025. Poll results revealed capital is expected to come off the sidelines and spark transactional activity in the CRE industry. Watch the video to learn more! #CRE #investment #interestrates
We recently polled the commercial real estate industry about asset values and transaction volume in 2025. Check out this video to hear the good news about how capital is expected to come off the sidelines and further fuel transactional activity across the CRE investment spectrum, especially now that the Federal Reserve has started lowering interest rates. #CRE #investment #interestrates
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A very interesting read - This surge will significantly impact the focus of recruitment over the next 12-24+ months. We're already seeing a notable increase in platforms recruiting for professionals skilled in acquiring and managing distressed assets and debt restructuring, with a strong focus on credit analysis and subsequent management. High interest rates, increased regulation (like Basel III), and the looming maturity wall of $2.9 trillion in commercial real estate debt by 2028 will create a surge in distressed opportunities. Firms like Fortress are positioning themselves to capitalise on these developments, with a particular focus on senior debt origination and distressed asset acquisition. This shift will drive demand for professionals skilled in managing distressed real estate portfolios, evaluating risk, and navigating complex debt structures. The regulatory landscape, combined with higher operating costs and shrinking asset values, means there will be an emphasis on structuring innovative solutions for borrowers. These evolving market conditions will increase competition for talent across distressed investment and credit management, emphasising skills in strategic lending, distressed asset recovery, and portfolio management.
“Given our credit focus and the fact that we have been involved in distressed real estate for decades, we are looking across the broad [landscape]. There is no product type or geography that is off-limits to us.” Tim Sloan, Vice Chairman and Head of Commercial Real Estate Debt at Fortress, spoke with PERE Credit about Fortress Investment Group’s real estate investing strategies and decades of experience in credit and real estate markets. “The quality of our team and our long history of experience positions us incredibly well. We want to continue to be known as one of the most sophisticated lenders and investors on the distressed side – and alongside that, continue to grow and diversify the business.” Read the full PERE Credit article here or on the Fortress website.
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8moAs someone very experienced in the space, do you feel the potential losses are being under reported?