Realist Capital’s Post

With anticipated interest rate cuts on the horizon, the commercial real estate market is poised for a significant rebound. This is a great article highlighting the positive trends emerging as financial conditions shift, presenting promising opportunities for investors and private lenders alike. As a private lender, I believe this is a pivotal moment to capitalise on market dynamics and support growth in this sector. Let's stay informed and ready to engage with these emerging opportunities! https://lnkd.in/g6mjYJBe  #JerichoCapital #CommercialRealEstate #PrivateLender #PropertyDevelopment

Equity Residential (EQR) vs. Realty Income (O) Find out which REIT giant comes out on top based on their financials, growth prospects, and market positioning. #REITInvesting #DividendStocks #StockMarketAnalysis #TipRanks Equity Residential Realty Income Corporation

Interest Rates and Market Rebound The commercial real estate market is set for a rebound as interest rates are expected to drop in 2024. This could lead to increased property values and more sales activity, especially in the industrial and multifamily sectors, which have remained resilient. Over the past few years, rising rates have slowed transactions and lowered values, but with rate cuts on the horizon, optimism is returning. Buyers may soon see better opportunities for acquisitions, and this could signal a strong year ahead for CRE. For a deeper dive into the market outlook, check the full article. 💡📈 #CRE #RealEstateTrends #InterestRates #CommercialRealEstate #PropertyInvestment #Multifamily #IndustrialRealEstate #MarketRebound #InvestmentOpportunities #CommercialBuildings https://lnkd.in/edqq5Jx9

Whether you tally by total dollar volume or number of physical properties, investment in multifamily has continued to tumble in the first quarter of 2024. https://ow.ly/G0gX50RZQ4A It's at the lowest level since the second quarter of 2020, the depth of the pandemic. But that also puts it at roughly half the quarterly average of 2019. Read full article in the link 👆 Wanna beat the recession? Now is the time to invest, take our five-question survey to see if you're a good fit: lvpefund.com/questionnaire #RealestateMarket #RealestateInvestment #CommercialRealestate #MultiFamilyRealEstate #AccredictedInvestors

In 2024, commercial real estate faces impactful trends amid the highest borrowing costs in 15 years. Traditional banks, reacting to rising vacancy rates, have reshaped the financing landscape. Explore these trends for insights on strategic portfolio positioning. https://lnkd.in/dfXjTVqG Wanna beat inflation? Now is the time to invest, take our five-question survey to see if you're a good fit: lvpefund.com/questionnaire Read more here 👆 #RealestateMarket #RealestateInvestment #CommercialRealestate #MultiFamilyRealEstate #AccredictedInvestors

Real estate markets to be invigorated as growing pool of buyers and sellers look to make a splash: http://savi.li/6049iLXCb A new year often brings renewed optimism, especially in the midst of a market down cycle. This year is no different. But there is perhaps more conviction in expectations of a recovery in 2024 than existed at the beginning of last year. In combination, a growing pool of buyers and an increase in motivated sellers will boost liquidity, which will support price discovery and - eventually - price recovery, as competition for assets intensifies. Read the full article for insights from Savills World Research. Oliver Salmon #CommercialInvestment #Investment #RealEstate #CapitalMarkets

Whether you tally by total dollar volume or number of physical properties, investment in multifamily has continued to tumble in the first quarter of 2024. https://ow.ly/G0gX50RZQ4A It's at the lowest level since the second quarter of 2020, the depth of the pandemic. But that also puts it at roughly half the quarterly average of 2019. Read full article in the link 👆 Wanna beat the recession? Now is the time to invest, take our five-question survey to see if you're a good fit: lvpefund.com/questionnaire #RealestateMarket #RealestateInvestment #CommercialRealestate #MultiFamilyRealEstate #AccredictedInvestors

PropTrack senior economist Paul Ryan was quoted on realestate.com.au last week, stating that, “There has been more investor activity in the market, both selling and buying. On net, we've seen more investors entering the market than investors leaving the market. He added, "Rental property shortages have lured investors into the market over the past six months, keen to take advantage of the rising yields. These rental shortages aren't going to be alleviated in the short term, so I think investors can see that although interest rates are high now, interest rates might reduce in the future, and rents are likely to keep growing strongly.” Read more here: https://lnkd.in/gHHb73WC

Rents Rebound • Cap Rates Jump • REIT Earnings Wrap Real Estate Daily Recap: https://lnkd.in/dVnrgSzt Agree Realty Corporation (ADC) - the fourth largest net lease REIT - gained 1.5% after reporting solid results and noting some upward movement in private market cap rates, which had remained stubbornly sticky despite the surge in benchmark interest rates over the past two years. $ADC - which had been among the only large REITs that did not provide full-year FFO guidance - initiated full-year guidance calling for FFO growth of 4.2%, which was above the analyst consensus of around 2% growth. Importantly, ADC reported meaningful upward movement in cap rates and reported a more deliberate pace of acquisition action, noting that it acquired $124M of assets at a 7.7% cap rate, which compares to Q4 activity of $187M in acquisitions at a 7.2% cap rate. Notably, the 7.7% cap rate in Q1 was the highest on record for ADC, and up notably from the lows of 6.0% in early 2022. ADC noted that while it has been able to push cap rates in recent months, it does continue to see "hesitancy to transact in a market when they were hoping for [rate cuts]."

Our latest view on the Real Estate Market - April 2024: • Interest Rate cuts now not expected until August/September. • Investment volumes remain weak with Q1 the slowest start to the year since 2009 but there are signs this will turn. • Office values continue to slide but opportunities remain in structurally strong locations. The West End remains the most resilient. • Industrial and Retail Warehouse values appear to have stabilised. • Data shows that the Residential market is seeing an uptick, suggesting that rental growth has helped investors overcome the increase in debt costs. • PMA Forecasts imply that most sectors have bottomed out, except regional offices and weaker shopping centres/high streets. • As always, there will be opportunities for the right assets, in the right locations, at the right price. Please feel free to reach out if you have any questions or if you think there is anything I can help with. #realestate #investment #banking #property #mortgage #finance #growth #strategy