"New normal" or "moment in time" in the multifamily market?
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COVID-19 reminded all investors that it is impossible to predict the future, but that understanding the present was the key to making relevant decisions.
According to many economists, we are in an "unprecedented era for capital," with several U.S. markets riding the momentum of suburban expansion. Multifamily and industrial real estate is, according to Marc Renard of Cushman & Wakefield, "the only game in town." Is this the new standard or a passing trend? That was the question on the minds of many in the U.S. commercial real estate industry at the annual multifamily conference hosted by the Globe St media in California (which took place last week).
"Capital has recently focused on multifamily and industrial because there is a lot of uncertainty when it comes to investing in office or retail," explained Rodney Chu of UBS Asset Management , who expects the trend to continue in the coming years.
On the other hand, as yields are squeezed, institutional capital may also move into other asset classes or take on more risk to meet their investors' expectations.
"I tend to think it's one-time and totally unprecedented for real estate. We're all gawking at the amount of unpredictable things that have happened in the last few years," said Paul Keller of Mack Real Estate Development, during a conference panel.
In the current context, many investment and real estate companies have repositioned their strategies to focus on the geographic areas and market segments in which they have the most expertise. The field approach and fundamentals seem to be coming back to the forefront.
Source : Globe St
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