Principal’s Rich Hill: Recovery is underway, but dispersion is growing

by Andrea Zander

U.S. commercial real estate is in the early stages of recovery, but the next phase of the cycle is likely to differ meaningfully from past rebounds. Rich Hill, senior managing director and global head of research and strategy at Principal Real Estate, said in an interview with IREI that rather than a broad-based recovery, he expects a more uneven, K-shaped pattern, with performance increasingly driven by sector, market and asset-level selection. In this environment, returns are expected to rely less on financial tailwinds and more on underlying property fundamentals, particularly net operating income and active asset management. As a result, he sees greater dispersion emerging across strategies, with outcomes increasingly tied to manager skill, selectivity and execution rather than scale alone.

Realty Income, Apollo to establish strategic partnership

by Released

Realty Income Corp. and Apollo have announced that Apollo-managed funds and affiliates intend to provide a $1 billion investment to Realty Income to acquire a 49 percent interest in a new joint venture entity that is expected to own a diversified portfolio of single-tenant retail properties subject to long-term net leases.

Multifamily dealmaking returns as bid-ask spreads narrow and refinancing pressure builds

by Andrea Zander

Multifamily investors are navigating a market defined by ongoing price discovery, refinancing pressures and shifting capital flows. In an IREI interview, Bret Hewett, head of acquisitions for ACRE's equity platform, outlines how narrowing bid-ask spreads and loan maturities are influencing deal activity, why many of ACRE’s opportunities today are driven by capital structure stress rather than weak fundamentals, and how investors are approaching underwriting in markets facing different supply dynamics. He also discusses where recapitalizations, joint ventures and structured equity are emerging as key entry points in the current cycle.

When housing policy becomes political theater: The 21st Century ROAD to Housing Act

by Geoffrey Dohrmann

Last week, the U.S. Senate passed the 21st Century ROAD to Housing Act by an overwhelming bipartisan margin. At first glance, that alone should inspire confidence. Housing affordability is one of the most pressing economic and social challenges in the country, and Congress rarely agrees on anything — let alone something this consequential.