CRE & REITs – U.S. Real Estate: A Storm Is Brewing – PIMCO

CRE & REITs – U.S. Real Estate: A Storm Is Brewing by John Murray, Anthony Clarke – PIMCO Summary Pressure on U.S. commercial real estate from volatility, regulations, maturing loans and uncertain foreign capital flows suggests prices could slump by as much as 5% over the next 12 months. This dynamic will create dislocations and financing gaps across U.S. commercial real estate debt and equity markets, both public and private, over the secular horizon. For flexible capital, these dislocations could create attractive investment opportunities. Storms form when moisture, unstable air and updrafts interact. Similarly, a confluence of factors – volatility…