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At Manchester Capital Management, we have always believed that real estate can be an excellent long-term store of value —in today’s market, however, success increasingly depends on owning the right assets in the right places. The US commercial real estate landscape is in transition. Years of tightening monetary policy and price corrections have given way to a period of slow recovery, where discerning investors can find compelling opportunities in regions and property types supported by strong demographic and economic momentum. This is where we feel MCM excels — helping our clients cut through generalizations and find value where others may see only uncertainty. This month, we’re pleased to feature insights from Corbin Rich, Managing Director and Head of Real Estate, who offers a thoughtful update on the current state of commercial property markets and the key trends shaping future opportunities. “How is the market right now?” I often get this question about commercial real...
07.05.2023
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...
