As the amount of troubled loans mounts, real estate lenders are revisiting strategies from the Great Recession to avoid taking back the keys on some assets.
With solid property fundamentals and plenty of potential demand, both institutional and high-net-worth investors have been working with firms that specialize in BTRs.
The “denominator effect” put institutions in a position where real estate allocations exceeded target levels, but observers expect that issue has begun to resolve itself as values of other investments have recovered.
Lack of stringent regulations in the U.S. real estate industry has allowed criminals, kleptocrats and sanctioned foreign nationals to launder their money through real estate investments.
A drop in demand for industrial space amid massive new product deliveries portends a potential glut of new product. Coupled with higher interest rates and worries about a recession, it’s forcing investors to rethink their acquisition strategies.