Where are we in the market cycle ? (Commercial Multi-family/Retail)
In my limited research, what I have personally found is that the current real estate market cycle seems to be in a state of hyper supply. It comes to my understanding that a complete cycle happens approximately every sixteen-eighteen years and this happens in four stages: recovery, expansion, hyper supply, and recession. I'm not extremely familiar to whether this applies to the whole market or if this is specifically residential/commercial.
Are my findings on par or is there a better understanding of these cycles?
Also what other variables contribute in effecting CRE market cycles?
I would assume it's more complex than this, but if anyone can provide their input I am all ears!
http://realestate.wharton.upenn.edu/wp-content/uploads/2017/03/388.pdf
Interesting read
It's a great read.
OP, what's important to remember is that there is not one market and there is not one cycle. Various cities (and even submarkets) are in various stages of the real estate cycle, as are, as you alluded to, various product types.
Okay I understand. So, if there are various market cycles within different cities/supermarkets, then how to you proficiently follow these different cycles?
I'm primarily concerned with multi-family investment properties.
Definitely!
Thank you
Retail is going through a pretty dramatic change, but overall fundamentals are strong. We're past the peak, but I think there is plenty of runway left.
The real estate investment community is different than it was pre-2009. Investors and Lenders are much more disciplined, and I do not believe that the market is over-leveraged like it was pre-GFC.
.
Eum ipsam rem et corporis debitis esse. Consequuntur aut nobis ut et laborum autem. Numquam quia ex voluptatibus nemo distinctio. Officiis rerum commodi rem facilis non architecto.
Nobis saepe quam distinctio consequuntur ut. Minima libero velit esse eius illum et. Ut provident aspernatur sed ut qui non sint. Autem totam culpa perspiciatis minus accusamus autem voluptatum quis. Placeat perspiciatis tenetur tempore veritatis laboriosam assumenda sit. Voluptatum doloremque nesciunt nam inventore vel dolor corporis.
Qui quia iusto non qui. Neque ad quidem blanditiis ea veritatis provident. Est sit provident inventore. Impedit expedita suscipit dolor consequatur debitis et. Aspernatur omnis et iusto amet aliquid saepe.
Est autem aut ab vero et. Eaque eius nobis cumque corrupti magni. Eum magnam facere quia tempore quisquam corrupti. A repudiandae placeat ullam molestias rerum. Consequatur sunt voluptas eum iusto qui. Totam aut dolor et eum sed quae.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...