Private REITs and Investor Redemptions: Still A Safe Place to Invest?
Lots of headlines about private REITs. Is real estate still a good place to be invested?
David Gregory says yes, but...consider 3 things:
1) Consider the Liquidity Terms
2) Think about price discovery and valuations when flows get wonky
3) Fundamentals - are you being forced to invest in commercial real estate?
Regarding that commercial real estate component, there are two additional considerations:
1) the move and shift away from physical corporate/commercial space
2) high interest rates - that means that cap rates and rental yields are going to have to go higher. However, there might not be flexibility to raise rates and thus property valuations would have to go down
Some great insights from Dave!