Deals once moved quickly, with structure often taking a back seat to winning the asset. Over the past three years, that dynamic has reversed. In today’s commercial real estate market, deal structure plays a much larger role in shaping risk-adjusted outcomes, and simply offering the highest price is no longer enough.
“The way transactions are getting done today is through structure, not price,” says Mark Green, CIO of Cottonwood Group.
“Transactions today require significantly more rigor, both in underwriting and execution, because the margin for error is much thinner,” notes Denis Curran, partner and COO at Ascentris.
According to Vaibhav Gujral, senior partner and co-author of McKinsey’s Global Private Markets Report, real estate investors are concentrating capital in fewer, larger deals and a narrower set of preferred assets. “Being more creative in asset sourcing and selection is becoming a common characteristic of deals that are gettin
