We Study Billionaires - The Investor’s Podcast Network TIP337: How to Identify Value in Commercial Real Estate w/ Ian Formigle
Feb 21, 2021
Ian Formigle, Chief Investment Officer at CrowdStreet with 24 years in real estate, shares vital insights on navigating commercial real estate. He discusses how COVID-19 transformed valuation metrics and trends, shining a light on the best cities to invest in. Ian highlights the importance of geography, fiscal stimulus effects, and evolving consumer habits in shaping the market. He also emphasizes opportunities in repurposing underperforming properties and the potential recovery of the hospitality industry post-pandemic.
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2020 Commercial Real Estate Performance
- Commercial real estate performance in 2020 varied wildly due to the pandemic.
- Industrial and manufactured housing thrived, while retail and hospitality suffered.
Impact of Money Printing
- Money printing and low interest rates are expected to put upward pressure on commercial real estate prices.
- Inflation combined with economic growth can drive rent growth, further increasing asset values.
Role of Fiscal Stimulus
- The 2020 stimulus package helped stabilize commercial real estate operations and provided a price floor, particularly for multifamily.
- PPP loans and additional unemployment benefits indirectly supported the market.
