

The Bull Case For Commercial Real Estate In 2025 And Beyond
Jan 16, 2025
In this discussion, Ben Miller, co-founder and CEO of Fundrise, provides a positive outlook on commercial real estate for 2025 despite current challenges. He emphasizes the importance of diversifying investments into real estate, merging stability with growth potential. The conversation delves into market dynamics, revealing the rental market's resilience amid shifts like remote work. Miller also highlights the impact of population trends and international demand on U.S. real estate, shedding light on how demographics and political policies shape investment opportunities.
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Real Estate Valuation
- Commercial real estate has declined while the stock market has rallied, creating a valuation gap.
- This makes real estate potentially attractive to value investors.
Real Estate as a Hedge
- Real estate and stock markets historically moved together, but recently diverged.
- This divergence makes real estate a potential hedge against stock market downturns.
Impact of Reduced Supply
- Oversupply in real estate from a construction boom is ending due to high interest rates.
- This reduced supply, coupled with increased demand, may lead to rent growth.