Presidential elections can trigger shifts in economic policies and regulatory frameworks, thereby influencing various sectors, including commercial real estate (CRE). Historically, property markets have responded more significantly to the macroeconomic landscape than to specific election results.
For two years, investors have heard about investment opportunities that will be driven by a “wall of maturities”, with over half a trillion dollars of US real estate debt coming due each year in a market with higher interest rates, lower asset values, tighter lending standards, low transaction volume, and low liquidity.
What are Secondaries? The answer to the question above used to be simple. A Traditional Secondary (also called an LP Fund Secondary) involves the sale of a limited partnership interest in an existing private fund from one investor to another, often with the involvement of a broker. The new investor takes the interest as-is.
As interest rates start their downward trajectory, many investors are wondering about the impact on property values and market dynamics. Will the rates go back down to the sub-1% levels or are they expected to remain higher? How will the interest rate levels impact the real estate values?
Nearly a decade after the Global Financial Crisis, investors and investment managers remain acutely focused on the cyclical nature of real estate. In this paper, Townsend’s Prashant Tewari and Christian Nye explore the key aspects of the current Commercial Real Estate Cycle.
Not all commercial real estate debt comes with the same risk/return trade-off. Townsend’s Prashant Tewari and Christian Nye discuss the perceived versus actual risk and why investment strategies must be evaluated methodically.
Asieh Mansour, Senior Advisor to The Townsend Group, and Townsend’s Prashant Tewari explore the implications for the economy and commercial real estate markets of Donald Trump’s Tax Cuts and Jobs Act of 2017.
Some believe that higher rates will lead to lower valuations, while others believe that an improving economy and rising inflation are beneficial to the asset class. Townsend’s Prashant Tewari takes a thorough analysis of periods of rising interest rates and points to three factors that need to be considered to determine how real estate will perform.
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