Rising Rates, Falling Values: The Commercial Real Estate Reset

While the U.S. economy seems to be headed for a soft landing, potentially avoiding a significant recession, economic trouble may still be brewing. In our latest episode of The Wealth Enterprise Briefing, WE Family Offices Managing Partner Michael Zeuner and Senior Investment Manager Matt Farrell, CAIA, explore commercial real estate, which has been significantly affected by the prolonged rise in interest rates. Tune in as they discuss the challenges and opportunities that investors should be on the lookout for in the commercial real estate space.

Key topics include:

• Shifting Dynamics in Real Estate Sub-sectors: The ramifications of remote and hybrid work on traditional office spaces and impact on multifamily units.
• Refinancing Challenges and Value Resets: The confluence of reduced income and valuation uncertainty poses significant challenges, potentially leading to underwater scenarios for some property owners.
• Debt Investment Strategies: Debt investment in real estate as a safer alternative to equity, considering the current environment of price discovery and valuation uncertainty.

The commercial real estate sector stands at a crossroads, poised between challenge and opportunity. Through insightful analysis and strategic positioning, investors can weather the storm and emerge stronger on the other side. Join us for a discussion on the nuances of real estate investment in a dynamic economic landscape, and stay tuned for our upcoming episode, where we explore venture capital within this economic climate. If you have any questions, please do not hesitate to contact us