My Concerns About The Commercial Real Estate Market // Volatility is the name of the game in the commercial real estate market right now, and after two years of one of the biggest bull runs we’ve ever seen in the industry, things are finally starting to shift in a few (big) ways.
Real estate pricing tends to lag valuation changes of more liquid assets, and even though interest rates and even public REIT pricing can change extremely quickly, the private real estate markets need time to adjust and agree on valuations to get deals done.
But over the past few weeks, we’ve started to see some interesting data come out that’s showing how this market is beginning to shift, and how some of the trends we’ve seen over the last few years are even reversing at this point in the cycle.
So to highlight some of the biggest shifts that are going on in the market right now and how these things are impacting rents, pricing, and the way that deals are being capitalized, in this week's video, let’s talk through two of the biggest changes in the market we've seen so far in 2022, why each of these things might be happening, and the potential impacts that these changes might have going forward.
*Nothing in this video should be construed as tax, legal, accounting, valuation, or financial advice or recommendation. All information in this video is intended solely for educational purposes, and you are advised to consult with your own personal professional advisors regarding your personal investment decisions.
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