Construction’s Growth Story Depends on What’s Being Built
Why this matters
Commercial real estate continues to digest a multi-year reset in cost of capital. Transaction velocity is below the 2019-2021 trend but improving, cap rates have stabilized across most stabilized property types, and the bid-ask gap has narrowed materially in the past two quarters. Sponsors with permanent capital and operating platforms have an advantage in the current execution environment. The next twelve months will continue to reward underwriting discipline and operational sophistication over balance-sheet aggression.
Editorial analysis · Real Estate Trail Editorial
U.S. construction market data tells two stories. New construction starts fell 20% month over month in June, on the heels of a 33.5% gain in May. The surge was attributed to large projects within healthcare, manufactur…
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