Why Real Estate?

Why Real Estate?

You may have heard that real estate investing has created more millionaires than any other asset class. And while this is true, you likely haven’t considered that real estate is also responsible for countless bankruptcies. 

This reality begs the question: How risky is real estate investing? And do the rewards outweigh the risks? We can start to answer these questions by looking at other popular forms of investing. 

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Record Fundraising Fuels Unprecedented Sales

Record Fundraising Fuels Unprecedented Sales

Major property buyers completed a record fundraising year, collecting money that helped drive unprecedented property sales as investors seek lower volatility from commercial real estate.

Private equity real estate fundraising in 2019 exceeded $150 billion for the first time to reach $151 billion, according to private capital data provider Preqin. Publicly traded real estate investment trusts raised $109 billion, the highest amount in 10 years and twice as much as raised in 2018…

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What Is Your Why?

What Is Your Why?

Why do people invest in real estate? 

Passive income, financial and time freedom, networking and relationships, building a business, etc., are just some of the numerous reasons why people get into real estate investing. 

On the other hand, the reasons people don’t get started in real estate investing can be boiled down to two things: apathy and fear.   

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U.S. Economic Watch: November Jobs Growth Crushes Expectations

U.S. Economic Watch: November Jobs Growth Crushes Expectations

November’s employment report far exceeded expectations. To have such a strong jobs report at a very mature point in the cycle is notable. Additionally, wage gains remained healthy, increasing by 3.1% over the past 12 months. This strength likely will give the Fed a reason to pause interest rate cuts. Beyond that, the broad-based strength of the report will support property market fundamentals.
 
CBRE expects economic growth will moderate in 2020, largely due to slower global growth and trade tensions. Sectors with exposure to these factors, such as manufacturing, will continue to face headwinds. Nevertheless, an outright downturn is unlikely due to the strength of consumers and continued economic growth supported by recent rate cuts. The outlook for property markets remains positive going into 2020.  

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Stability CBRE Outlook - Amid Uncertainty | 2020 U.S. Real Estate Market Outlook

Stability CBRE Outlook - Amid Uncertainty | 2020 U.S. Real Estate Market Outlook

2020 could be a pivotal year for the U.S. commercial real estate industry, with geopolitical, economic and local regulatory issues in keen focus. Despite transformational changes to our business, CBRE’s 2020 U.S. Outlook predicts a very good year for commercial real estate.

Resilient economic activity, strong property fundamentals, low interest rates and the relative attractiveness of real estate as an asset class are the primary factors supporting our outlook. Barring any unforeseen risks, we assess that a recession will be avoided, thanks in large part to the stimulatory effects of the Fed’s rate cuts in 2019.

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