Thoughts on investing in commercial real estate now or in the near future?

Anyone bullish on commercial real estate given its steep decline throughout this year? I'm just a college student looking to throw some money into a REIT or some sort of real estate portfolio company. Thought it could maybe be a good time to buy given regional bank collapses, high rates, lack of refinancing, and lack of demand for commercial real estate right now. Frankly I don't know too much about real estate so I'm curious what everyone's thoughts are and if you see commercial real estate continuing to decline or potentially recovering in the near future. 

2 Comments
 
Most Helpful

Everything is about price/value. Let's say that a property generates $100k and investors are willing to pay $1mm for this property, so the property is worth $1mm. Now lets say for whatever reason - be it interest rates, work from home, the Amazon effect, etc... - this property now generates $50k. The property still has value and can still be a good investment...just not at $1mm, perhaps investors are now willing to pay $500k for it. So to answer your question, I am actually quite bullish on commercial real estate, but only at the right price. And I think given what's happening in the market, this is a very opportune time to keep an eye on real estate. It's not everyday that real estate values fall...this is the first time in 15 years and given how illiquid real estate is and how asymmetrical information is, there can be some significantly mispriced properties from sellers because they are distressed (i'm already starting to see quite a few distressed sellers).

As for REITs, unfortunately I can't provide much insight. You're just kind of at the mercy of the REIT managers making good decisions and at the mercy of the market.

 
Funniest

Voluptates nihil sit aliquam consequatur vel. Aut in maiores fuga maiores nostrum quia porro. Eos qui fugit quis doloremque. Nihil laborum eos ut eum minima non error perspiciatis.

Ratione autem autem voluptate nihil voluptatem autem similique. Et unde aut commodi debitis quo dolor consequatur est.

Career Advancement Opportunities

August 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • JPMorgan 01 98.3%
  • Morgan Stanley 08 97.8%
  • Goldman Sachs 02 97.2%

Overall Employee Satisfaction

August 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Evercore No 98.9%
  • Morgan Stanley 01 98.3%
  • Banco Santander 02 97.8%
  • BMO Capital Markets 12 97.2%

Professional Growth Opportunities

August 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • Morgan Stanley 06 98.3%
  • Goldman Sachs 01 97.8%
  • JPMorgan 01 97.2%

Total Avg Compensation

August 2026 Investment Banking

  • Vice President (16) $429
  • Associates (47) $258
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (25) $178
  • Intern/Summer Associate (14) $159
  • 1st Year Analyst (83) $151
  • Intern/Summer Analyst (74) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Secyh62's picture
Secyh62
99.0
4
kanon's picture
kanon
99.0
5
GameTheory's picture
GameTheory
98.9
6
CompBanker's picture
CompBanker
98.9
7
Betsy Massar's picture
Betsy Massar
98.9
8
dosk17's picture
dosk17
98.9
9
DrApeman's picture
DrApeman
98.9
10
Mimbs's picture
Mimbs
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”