A limited competition dynamic and the superior credit profile of new loans in today’s market make now a great time to invest in real estate debt, according to Richard Ratke, managing principal and co-founder of Walton Street’s debt platform, in a Q&A published in the February issue of Institutional Real Estate Americas.
“Given the rate market has largely stabilized and cap rates have now adjusted to account for increased financing costs, most expect transaction volumes to increase in 2025 closer to the 2019 to 2024 average of approximately $600 billion annually,” says Ratke. “This should drive a meaningful increase in borrower demand amid the backdrop of a more limited supply of debt capital and is expected to offer a favorable pricing dynamic for lenders.”
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