I was looking back at some articles written earlier on this year (pre-covid), when I came across this one published in Property Week in January 2020, titled “the real estate debt market will be full of opportunity in 2020”.
Whilst the past 6 months, the Covid pandemic, has done its best to create chaos within the real estate debt market, it’s also created opportunities. It may seem strange, but there are points within this optimistic article which hold as true today, as they did back in January when the article was published.
- we were already late in the cycle and debt is a more preferable asset class over equity
- even though some commercial sectors are being hit, it’s still not 2007 territory
- debt is being sensibly priced, investors are being correctly compensated
- investors are taking a more analytical approach when looking at deals
- not all retail deals are bad and not all logistics deals are good, assets are being treated on a case by case basis
there are still sensible and attractive repositioning opportunities out there
The Commercial property market covers a wide range of traditional and alternative asset classes, each offering differing investment opportunities. The commercial real estate debt market is no different – opportunities exist.
Photo by Paul Skorupskas on Unsplash
