There is a 'real disconnect' in CRE, Hines Global CIO says
Real estate capital markets have been under pressure globally, while the direction of interest rates in the US remains more uncertain as compared to the Federal Reserve's global central bank counterparts. Joining Asking for a Trend to discuss the evolving real estate environment is David Steinbach, Hines Global Chief Investment Officer. Steinbach notes that the real estate sector had experienced 40 years of declining interest rates, with many financial markets becoming "deeply embedded" in this dynamic. However, the shift towards the current interest rate environment represents a transition from a "beta to alpha" environment, calling today's landscape "a different sport" that requires more effort. Steinbach highlights downtown investments and transit-oriented investments as promising opportunities, also touching on the state of commercial real estate. Internationally, he identifies Europe, India, and Japan as attractive markets with high demand in the real estate sector. "Real estate is becoming more of a service, and so it's about what you're doing for the customer, the tenant. That really is moving the needle now more than ever," Steinbach told Yahoo Finance. For more expert insight and the latest market action, click here to watch this full episode of Asking for a Trend. This post was written by Angel Smith