Builders face a tougher math problem as completed inventory rises
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
With apologies to Jim Morrison and the Doors, the time to hesitate is through
External link. Real Estate Trail does not republish source content.
More from the wire
FROM ENQUIRIES TO DEALS: FOREST CITY’S INDUSTRIAL PARK AND FINANCIAL ZONE GATHER PACE
Landmark Delivers Tallest Student Housing Property in Philadelphia’s University City
Landmark Properties has delivered The Mark Philadelphia, a 909-bed student housing community in the University City neighborhood. Rising 34 stories, The Mark is the tallest student housing property in the University C…