Rapid Changes in the Investment Real Estate Market
We have entered a period of rapid change. I wanted to reach out to you to offer insights, information, and dialogue to help you navigate an increasingly challenging investment market as you seek to protect your holdings and take advantage of new opportunities.
· The global economy has slowed and the duration and depth of an increasingly probable economic recession remain unclear.
· The market has always been cyclical and always recovers from exogenous shocks. The 2008 financial crisis is a recent reminder.
· Interest rates are at a historic low but lenders are tightening their criteria.
· Some tenants are more fully insulated from an economic downturn and will continue to thrive.
· Depending on your portfolio holdings, acquisition goals, debt level, and cash position, any one of hold, buy, or sell may be advantageous in the coming months.
· Institutional and private client buying and selling of single and multi-tenant retail, office and industrial properties remains high.
· In a strong market like the one we have enjoyed recently, all asset types, tenant types, and property locations increased in value with very little differentiation. In transitioning markets like the one we are entering, data is paramount because the market will reward to a much greater extent real estate fundamentals, tenant balance sheet strength, and resilient business models.
· Events and market conditions will change very quickly in the coming months and we will continue to have the most current information on deal velocity and evolving market conditions for income-producing real estate available for you.
I am available to share current market data, and to discuss your individual goals and strategies via phone or email any time so don’t hesitate to reach out for additional information and dialogue.
And, most importantly, take good care and help others when you can.