What a Recession Could Mean For The Commercial Real Estate Market // If you’re reading this right now and you’re anywhere under the age of about 30, at this point, you really haven’t seen a prolonged market downturn in your entire working career.
And even though we saw a big hit to the financial markets in the spring of 2020, this “recession” only lasted about two months in total, and was followed by almost two years of massive growth in stocks, real estate, and even wages (as interest rates fell to all-time lows).
But today, with year-over-year inflation numbers clocking in at over 8% in each of the last three months, monetary policy has shifted in the complete opposite direction, with a tightening by the Fed and substantial interest rate increases already in the books for 2022 that have ultimately led to a lot of fear around a sustained recession this time around.
So to help you navigate what could be some pretty choppy waters over the next 12-24 months, in this video, let’s talk through some of the most common commercial real estate trends that tend to play out during economic recessions, and what seasoned real estate investors and private equity firms do to manage risk (and even profit) during these times.
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🕒 Timestamps 🕒
1:32 Tenant Demand Shifts
3:22 Capital Demand Shifts
6:06 Dry Powder Wins
8:02 Quantifying The Opportunity
10:16 Learn To Analyze Deals
*Nothing in this video should be construed as tax, legal, accounting, valuation, or financial advice or recommendation. All information in this video is intended solely for educational purposes, and you are advised to consult with your own personal professional advisors regarding your personal investment decisions.
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Research and articles referenced in this video: