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The Commercial Real Estate Landscape – Navigating Today’s Crosscurrents

The Commercial Real Estate Landscape – Navigating Today’s Crosscurrents

For more than three years, the United States economy has been working through a massive set of disruptions related to the COVID pandemic, the subsequent policy responses, and the second-order effects of those responses including a spike in inflation, interest rate volatility, evolving living and working patterns, and accelerating technological innovation. These disruptions have touched nearly all aspects of our daily lives with significant reverberations throughout the real estate industry. Real estate is inherently cyclical and highly dependent on capital markets and debt for liquidity. Commercial real estate in particular has seen tremendous impacts from these recent disruptive forces. Transaction volume initially dropped and subsequently skyrocketed during the pandemic as stimulus and historically low interest rates drove investors into any assets offering positive yields. As a result, valuations increased as investors drove pricing higher in auction processes. Rents, particularly in the apartment and industrial sectors, increased substantially due to strong...

Assessing the Role of Alternative Investments in a Volatile Market

Assessing the Role of Alternative Investments in a Volatile Market

There are few concepts more central to achieving long-term investing success than portfolio diversification. This idea, which at its core is simply not having all your eggs in one basket, has taken on added complexity in recent years thanks to the widespread adoption of so-called alternative investments. The term has come to encompass an incredibly diverse range of strategies and approaches with a correspondingly wide range of potential outcomes for investors. Alternative investments can provide important benefits to investors if approached carefully and according to a sensible investment plan, especially at times with significant market uncertainty such as we’ve experienced in recent years. Alternative investments (also called alternatives, or alts), writ large, can be difficult to categorize. We consider them to be anything that is not a traditional stock or bond market investment. The range of alternative investment strategies includes: An important feature of each of these categories of investment...