Commercial real estate debt investing holds promise for investors

With high inflation and interest rates still on the rise, property investors have been on edge given credit lending drying up amid banking sector turmoil. That lack of market liquidity, however, is creating a tailwind for nonbank lenders in commercial real estate.

Investors should look for on-the-ground partners with significant experience and skills to originate, structure and manage risk in credit markets, according to a virtual roundtable with institutional investors, consultants and investment managers held May 10 by Institutional Real Estate, Inc. on about current opportunities in the commercial real estate debt sector. The in-depth strategy session was moderated by Reno Sio, managing director, Asia Pacific, at IREI.

Key takeaways include the following for the U.S. and Australian markets:

U.S. market