CenterSquare anticipates reaching peak rates, which should establish a compelling opportunity for real estate investors to deploy capital in the private markets in the coming year, according to its recent report.
The report highlights the following for the asset class this year:
A reset in valuations predominantly influenced by capital markets, rather than a significant negative shift in fundamentals, is evident. Amid this recalibration, CS believes that unique opportunities will exist to acquire high-quality real estate at substantial discounts. Owners with challenged capital stacks, marked by high leverage and uncapped or expiring cap floating-rate debt, will present avenues for strategic investments.
Short-term, select fundamental challenges, such as oversupply in desirable asset classes, will be temporary hurdles. Keeping this in mind, CenterSquare cites purpose-built rental communities, manufactured housing communities, opportunistic MFH and indust