Nareit's REIT Report Podcast AEW’s Mike Acton says Real Estate Provides Anchor Amid Elevated Tech Valuations
Nov 20, 2025
Mike Acton, Head of Research and Strategy for North America at AEW, shares invaluable insights into the commercial real estate landscape. He explains how current valuations are driven by supply dynamics rather than recession fears, presenting a prime investment opportunity. Acton urges smaller investors to reconsider their portfolios, as leading institutional players are heavily invested in real estate. He also discusses potential M&A activity in distressed sectors, emphasizing the need for a focus on income growth amidst elevated tech valuations.
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Values Fell Without A Recession
- Commercial property values fell ~20% without a recession because yields rose after Fed rate hikes.
- Earnings grew over that period, so the downturn was yield-driven rather than income-driven.
Supply Wave Has Turned Over
- Supply in high-growth sectors has rolled over because values now sit below replacement cost.
- That reduced construction suggests a longer recovery cycle with limited new supply pressure.
Lean Into Income As Entry Strategy
- Consider buying now because property yields are the highest in a decade and values sit below replacement cost.
- Focus on income rather than hoping for yield compression-driven value gains.