The following Q&A was completed as part of our conversational Commercial Real Estate FAQ Interview Series, we hope you find it helpful.
The COVID-19 pandemic is creating waves and making it’s own trends within the commercial real estate market. The projects really attracting capital right now are in multi-family and affordable housing, and this is a trend that is not expected to go away as the pandemic wanes. Families migrating to different “hotspots” throughout the country will still need to find affordable and suitable housing.
Richard Wilson: What is attracting capital through the pandemic right now that you think will continue to do well after the recovery from COVID? Like what types of assets, or what kinds of real estate food groups are you seeing attracting a lot of capital?
David Greer: Multi-family still, in the right geographic regions, and also there’s a lot of debt funds that are raising capital and anticipating that there’s going to be distress in the market. So you’re seeing a lot of those, they’re sitting on the sidelines and waiting to see, we haven’t really seen it come to fruition yet, but they feel like it’s out there. So I think that’s going to happen. I think also the migration of people from the northeast to Florida, or maybe from California to Texas, you’re going to see those areas continue to grow and attract capital as well. Places like Hawaii have a big shortage in workforce affordable housing, and I think they’re going to look to grow that significantly in that area as well.
Richard: Right, okay.
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