Real estate funds appear to be staying the course and factoring in a slight overall cooling of the market, according to the Real Estate and Construction Industry Outlook by RSM US issued this week.
Fundraising is taking on the same mindset, as the volume of sales transactions and related cap rates achieved in those transactions have both eased, it said.
Investors are currently on their back foot, reevaluating valuations and strategies as interest rate hikes and inflationary pressures point to a potential looming recession. Capital is pointed to less-risky plays, value-add and core and core-plus assets, RSM real estate senior analysts Lauren Gerdes and Sarah McKevitt said.
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