Best Place to Be in Current CRE Market: Investment, AM, Debt, Equity, Special Sits etc?
With current market corrections and turmoil there is likely to be changes, may be even crisis, but it's also could be an opportunity - what's the best CRE niches to be in? Special Situations? Asset Management?
Sun belt region?
No doubt it’s the region where capital is flowing in, but is there going to be much investment activity going on in the near future
Would say asset management personally
Special situations and acquisitions are fun rn
Currently switching from development to debt fund.
Would love to hear more about this move. Currently in development but finding myself drawn towards the more analytical side of the business. Would appreciate any insight on the following.
Are you looking for an originations or underwriting role? Or some hybrid of the two?
What kind of developments did you work on and how are you finding this experience/skillset translates in the interview process?
Can fill some of your questions. I worked on the commercial end of a dev team.
Our development pipeline at my current shop has dried up, either funds are out of dry powder to make moves, or (re)development deals starting this year won't pencil in at current rents/acquisition prices.
I would love to return to the development management side when things calm down. But I can imagine some interesting times on the debt/mezz side when developments that are at 50% completion can't reach the finish line with the funding sources they started construction with. Alternatively, many banks will be less willing to refinance existing real estate loans on certain asset classes, meaning funds may be forced to sell at a loss if they can't replace their senior debt (*also answer to the below comment if there is any demand for debt at 8%).
industrial leasing
You think there will be a lot of demand for debt @ 8%?
Am for special servicer
I think it's all going to be very interesting and the most important learning experience most of us (the ones that haven't seen a REAL bear market yet) will have in our young careers. I've learned more than I have in my entire career in the past year alone on the dev side, and I expect a lot more tricky situations in the next year.
Everyone with a pulse looks like a genius in a bull market. What we endure and learn from this part of the cycle will be invaluable to making us more successful in the long term.
In a recession the best is to just be employed. No one is making money on deals in either acquisitions, development, or lending when the deals don't pencil out and nothing transacts. The most stable role at this point would be asset management to make sure the existing portfolio doesn't default.
True. True.
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