Real Estate Reckoning

We Believe

  • Our long-term outlook for commercial real estate investing argues for a flexible, long-term approach to seize opportunities in debt and equity investments across the real estate landscape.
  • We see the best opportunities in originating new loans and purchasing existing loans, adopting a broad approach to debt, and targeting stressed assets in turbulent markets.
  • In our view, investors should take advantage of opportunities in private credit and special situations emerging from market volatility.
  • We see opportunities with concentrated investments in promising sectors like residential, logistics, and data centers across the U.S., Europe, and Asia-Pacific, adapting to regional trends for maximum success.

The foundations of the global commercial real estate market are shifting. Since 2020, a confluence of factors – a dramatic shift in how buildings are used, the fastest surge in interest rates in more than 40 years, bank failures in the U.S. and Europe, and now a looming recession – could prompt price declines not seen since the global financial crisis 15 years ago.

This upheaval will challenge the rules of thumb and require a fresh approach to real estate underwriting. Over the cyclical horizon, commercial real estate dynamics are likely to get worse before they brighten.