Why U.S. Real Estate Now

NAREIM Dialogues

By Tom Gilbane and Aric Shalev, Managing Members and Co-Presidents of Rockpoint

First published in NAREIM Dialogues

Summary:

The current downturn in the U.S. real estate industry, largely catalyzed by higher interest rates and shifts in demand following the Covid-19 pandemic, creates opportunities to generate enhanced value. However, this will require executing a focused, selective and hands-on strategy, and partnering with organizations with experience across periods of dislocation. While the downturn has impacted all real estate investments to varying degrees, not all property types and markets are expected to be positioned for a rebound in value in the coming years. For example, we do not expect interest rates to return to pre-2022 low levels in the coming years, and factors such as shifting demographics and evolving tenant needs have dramatically altered demand.

Read the full article in the Spring 2024 issue of NAREIM Dialogues (page 16 of publication).