A new era of investing has begun, according to David Steinbach, global chief investment officer at Hines. Steinbach recently tackled a few questions from Institutional Real Estate, Inc. about the current investment market, touching on the far-reaching impacts of the higher-interest-rate environment.
In your recent investor letter, you noted, “The strong 40-year tailwind of declining interest rates is over, and it ended quite dramatically.” What will that mean for commercial real estate?
Steinbach: Broadly, this new reality, which follows an extended period of growth across all asset classes, requires a significant recalibration of both strategy and perspective for an industry where most participants have only experienced a favorable rate environment. The removal of low-cost capita