Animal Spirits Podcast

Talk Your Book: State of The Real Estate Market

Feb 24, 2025
Explore the current state of the real estate market and how it’s been affected by rising interest rates. Discover the surprising resurgence of A malls while traditional shopping centers struggle. Gain insights into the complexities of managing REITs and the potential benefits of active investment strategies. Delve into the risks associated with high leverage in real estate and compare public versus private market advantages. Identify promising growth sectors like data centers while navigating underperforming areas like office spaces.
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INSIGHT

REIT Media Attention

  • REITs receive less attention in financial media than individual stocks or interest rates.
  • This is partly because REITs have performed poorly relative to the market in recent years.
INSIGHT

REIT Performance and Rates

  • REITs have been a poor investment over the last couple of years due to rising interest rates.
  • However, higher rates have resulted in increased yields for REITs, making them potentially more attractive now.
INSIGHT

Interest Rate Impact on Real Estate

  • Interest rates impact real estate significantly because it's income-oriented and often leveraged.
  • REITs have been repriced to reflect the current interest rate and inflation environment.
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