Trends Watch: Real Estate Investing Outlook

EisnerAmper’s Trends Watch is a weekly entry to our Alternative Investments Intelligence blog, featuring the views and insights of executives from alternative investment firms. If you’re interested in being featured, please contact Elana Margulies-Snyderman.  

This week, Elana talks with Marci Loeber, Managing Principal, Griffith Properties.

What is your outlook for real estate investing?

The current environment is very challenging with a wide bid/ask gap given the rising interest rate environment and the macro-economic picture. That being said, we are underwriting a lot of deals and submitting offers on lots of assets, both on and off market. 

Where do you see the greatest opportunities and why?

The office sector will clearly see a huge basis reset given the debt liquidity challenges. Redemption needs from private REITs and the open-ended core funds will also provide for some opportunities.

What are the greatest challenges you face and why?

Te greatest challenge is the bid/ask gap.  Seller expectations still don’t align with the current lending environment.  Some markets are starting to show signs of capitulation.

What keeps you up at night?

Lack of tenant demand and how that impacts our existing portfolio.

The views and opinions expressed above are of the interviewee only, and do not/are not intended to reflect the views of EisnerAmper.