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Modular Manufacturing, VDC Are Redefining Heavy Industrial Construction

Kristin Harlow — Thu, 15 Oct 2026 13:07:14 +0000

By Matt Willson, Holland Construction Services The pipeline of heavy industrial construction in the United States has never been larger or more demanding. Driven by a wave of reshoring, domestic manufacturing investment and landmark federal legislation, companies like Samsung, TSMC, Hyundai, Panasonic and Ford are committing tens of billions of dollars to new production facilities across the country. Samsung alone is investing $17 billion in semiconductor fabs in Taylor, Texas. TSMC has committed more than $65 billion to three fabrication plants in Arizona. Ford and SK On are building a $5.8 billion electric vehicle (EV) battery campus in Kentucky. The scale is extraordinary. And it is exposing a hard truth about conventional construction: The traditional field-built model cannot keep pace. The labor math doesn’t work The construction industry entered 2025 needing 439,000 additional workers just to meet existing demand. This number rose to approximately 500,000 by 2026, according to workforce data tracked by the Associated Builders and Contractors. The shortage is structural, not cyclical. Roughly 41 percent of today’s construction workforce is projected to retire by 2031, and 92 percent of contractors already report difficulty filling open positions. Forty-five percent have experienced project delays in the past year attributable directly…

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Investors Are Hungry for Retail Deals, But Not Enough Assets Are for Sale to Satisfy Appetite

Kristin Harlow — Tue, 13 Oct 2026 13:24:47 +0000

A lack of quality inventory is one of the prominent factors shaping the retail investment sales landscape. Simply put, there is more capital seeking retail opportunities than there are assets available for purchase, says Michael Marks, executive director of retail capital markets with Cushman & Wakefield in Chicago. Strong leasing activity and rising rents are bolstering investor confidence in the retail market, he adds. Amid historically low vacancy, U.S. retail asking rents grew 2.2 percent year-over-year to $25.65 per square foot triple net, according to Cushman & Wakefield’s second-quarter report. Structural supply constraints continue to support sustained rent growth, as the development pipeline represents less than 0.3 percent of existing inventory. Retail investors are firmly in acquisition mode, according to JLL’s second-quarter U.S. report. In the first half of the year, retail investment sales volume reached $33 billion, up 14 percent year-over-year and the strongest first half since 2022. Evan Lyons, executive vice president with West Bloomfield, Michigan-based Encore Real Estate Investment Services, poses the question — where does the next wave of inventory for transactions come from? “Some will come naturally through ownership transitions, partnership changes, fund lifecycles and other reasons investors need to sell,” predicts Lyons. “Debt maturities…

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Healthcare REITs Accelerate Buying Spree

Hayden Spiess — Tue, 06 Oct 2026 11:54:00 +0000

By Beth Mattson-Teig Healthcare REITs are well-capitalized, and they’re putting that significant financial muscle to work with big moves to expand their seniors housing portfolios. As the world’s largest healthcare REIT with a market capitalization of nearly $170 billion, Welltower Inc. (NYSE: WELL) continues to dominate the investment market. Year-to-date through mid-August, Toledo, Ohio-based Welltower had a staggering $15.5 billion in new investments that it had closed or under contract, and another $6 billion in deals in the pipeline. A major focus for the REIT has been expanding its Seniors Housing Operating Portfolio (SHOP) platform. SHOP allows REITs to share in the operational upside of properties compared to the fixed rents with traditional triple-net lease structures (see sidebar). Across the industry, there is no shortage of mega-deals. American Healthcare REIT Inc. (NYSE: AHR), based in Irvine, California, recently announced plans to acquire eight seniors housing properties managed by Kensington Senior Living for $873 million. Earlier this year, Chicago-based Ventas Inc. (NYSE: VTR) announced a $540 million deal to acquire a majority stake in an 11-community luxury senior living platform owned by the Wolff Co. It’s no secret that REITs have been active buyers for the past several years. “This external…

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The Great Cap Rate Puzzle: Rethinking How Net Lease Real Estate Responds to Interest Rates

John Nelson — Thu, 01 Oct 2026 11:36:00 +0000

By Jeff Lefko of Hanley Investment Group Real Estate Advisors For much of the last few decades, commercial real estate investors have operated under a simple assumption: interest rates rise, and cap rates rise with them. It is a straightforward relationship: intuitive, widely accepted and deeply embedded in underwriting models and investment committee discussions across the industry. Yet in the net lease sector, the connection between interest rates and cap rates has been far less direct than many believe. Since early 2022, the Federal Reserve has increased short‑term rates by more than 500 basis points, the fastest tightening cycle in four decades. Longer‑term borrowing costs remain elevated compared to the ultra-low-rate era of 2020 and 2021, even after the Fed’s rate cuts through 2025. Conventional thinking suggests net lease cap rates should have expanded sharply. Instead, cap rates across much of the single-tenant and multi-tenant net lease market have risen only modestly relative to the scale of the rate increases. There has been movement in certain segments, particularly in secondary markets, shorter lease terms and lower credit tenants, but the broader market has moved far less than the headline rate increases alone would suggest. This raises an important question for…

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Why Capital Markets Have Become the Biggest Story in Commercial Real Estate

Taylor Williams — Tue, 29 Sep 2026 11:52:00 +0000

By Cliff Booth, founder, chairman, Westmount Realty Capital For more than 40 years, Westmount Realty Capital has invested through multiple commercial real estate cycles. Each cycle has its own characteristics, but one common theme has remained constant: periods of uncertainty tend to reward discipline. Today’s market is no exception. Commercial real estate continues to operate against a backdrop of elevated interest rates, geopolitical uncertainty and a more constrained capital environment. While these challenges are widely discussed, what is often overlooked is how significantly capital markets conditions are now influencing every aspect of the investment process. In many ways, capital markets have become the story. The Pricing Disconnect Slowing Transactions One of the most significant challenges facing the industry today is the disconnect between buyers and sellers. Many owners remain anchored to valuations that were established during a period of historically low interest rates, while buyers must underwrite acquisitions using today’s cost of capital. The result is a pricing dislocation that has materially reduced transaction volume across many sectors. That slowdown matters because liquidity fuels investment activity. When assets are not trading, investors have fewer opportunities to recycle capital into new acquisitions. Fundraising becomes more challenging, capital deployment slows and transaction…

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Cushman & Wakefield: Materials Pricing Fluctuations Change the Construction Equation

Abby Cox — Tue, 22 Sep 2026 14:28:32 +0000

CHICAGO — As employer costs cool down, materials — particularly metals — are emerging as the bigger source of construction costs pressure, according to findings from Cushman & Wakefield’s Construction Insights: Summer 2026 report. For much of the post-pandemic construction cycle, finding people to build was becoming increasingly expensive. Labor shortages, wage growth and competition for skilled trades pushed construction costs higher as developers navigated an already challenging development environment. But now, that equation is beginning to change. The recently published report shows that construction cost pressures are becoming concentrated in materials, as metals and equipment prices rise more rapidly while labor-cost growth steadies. The shift is significant for developers and contractors as the factors influencing project budgets are becoming tied to pricing commodities, which are impacted directly by tariffs and global supply chains. The increase in commodity prices is more than 4.7 times the rate recorded a year earlier, led by aluminum at 40.9 percent, copper base scrap at 39.3 percent and nonferrous metals at 38.5 percent, as reported by Cushman & Wakefield. A Different Kind of Pressure According to Cushman & Wakefield, the ENR Building Cost Index rose 4.7 year-over-year in August 2026, while its skilled labor component…

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InterFace: Seniors Housing Executives Say Boomers ‘Want Something Different’

Abby Cox — Thu, 17 Sep 2026 14:41:27 +0000

ATLANTA — Born between 1946 and 1964, the Baby Boomer generation has spent nearly eight decades redefining what each stage of life looks like. From coming of age during a period of sweeping social change in the 1960s to becoming one of the largest and most influential consumer cohorts during the 1980s and 1990s, boomers have rarely been a group that follows a prescribed path. Now, as the oldest boomers enter their 80s and the younger members approach their 60s, that mindset is following them into senior living. Unlike previous generations, many boomers are arriving with an established sense of identity and a clear idea of how they want to spend their time. The generational shift was a central theme among senior housing CEOs on “The Power Panel” at the 13th annual InterFace Seniors Housing Conference, which was held on Aug. 25. Jointly hosted by France Media’s InterFace Conference Group and Seniors Housing Business magazine, the event brought together roughly 350 professionals at the Grand Hyatt Buckhead Atlanta. Editor’s note: InterFace Conference Group, a division of France Media Inc., produces networking and educational conferences for commercial real estate executives. To sign up for email announcements about specific events, visit www.interfaceconferencegroup.com/subscribe. While executives discussed…

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One Operating System, Three Asset Classes: Why the Self-Storage Playbook Travels

Taylor Williams — Tue, 15 Sep 2026 11:54:00 +0000

By Jeff Evans, president, Volta Global Eight years on Wall Street, including six-and-a-half years at long-short equity hedge funds, will teach an investor to look beyond a business’ headline characteristics. Public markets teach investors to understand business models, identify changing industry dynamics and allocate capital with attention to both opportunity and downside. When this writer moved into private, long-term investing, that analytical discipline played an invaluable role. What changed was the horizon. Self-storage is a core focus at Volta Global, alongside essential, unanchored strip retail centers and durable small business operations. These investments may look different, but they share a common requirement: the ability to source, underwrite, acquire and improve assets in complex, often inefficient markets. The common thread isn’t the property type. It’s the capabilities required to create value. How The Playbook Expanded The decision to expand beyond self-storage was not driven by a decision to pursue another asset class. It began with an essential retail property included in a larger acquisition focused primarily on storage. Volta acquired the retail asset because it was part of the broader transaction. Once we began assessing the property, its tenants and its market, we recognized that many of the capabilities developed in…

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Ten Legal Due Diligence Priorities for Hotel Investors

Kristin Harlow — Thu, 10 Sep 2026 15:08:25 +0000

By Tim Franzen, Ginsberg Jacobs Nearly 30 years as a principal sponsor of hundreds of hospitality real estate investments have shaped how I approach legal due diligence. Hotel deals rarely fail because someone missed an obscure legal technicality. They fail because buyers, lenders and even counsel didn’t fully understand the business implications of key property and operational issues. The franchise agreement that looked standard triggered a property improvement plan. The management contract that seemed reasonable made the operator nearly impossible to remove. The union agreement exposed the owner to unexpected pension liabilities. The following due diligence priorities aren’t exhaustive, nor are they a substitute for experienced legal counsel. But if you can confidently address each of them before going hard on a hotel acquisition, you’ll be in a far stronger position than most investors. 1. Understand what you’re actually buying. Hotel acquisitions involve far more than real estate. In addition to land and buildings, you may be acquiring management agreements, franchise rights, liquor licenses, union obligations, equipment leases and vendor contracts. Hotels are operating businesses, not just real estate assets. Before closing, your legal team should identify what transfers automatically, what terminates and what requires third-party consent. Pay particular attention…

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InterFace Panel: Operator Relationships Are Key to Pricing, Awarding Deals in Seniors Housing

Taylor Williams — Tue, 08 Sep 2026 11:53:00 +0000

By Taylor Williams ATLANTA — The cog between the wheels, the mortar between the bricks, the grease between the skids — when it comes to seniors housing, whatever your preferred cliché is for the factor or mechanism that makes it all work, you’re likely talking about the operator. Operators in seniors housing have always provided crucial services in the forms of resident caregiving, facility maintenance, property marketing and programming execution. But in 2026, amid a rebounding investment sales environment, third-party operators also play important roles in helping sellers accurately underwrite costs that fall outside their traditional line-item purview. In addition, the reputation of the operator can factor into the buyer pool for a property on the selling block. Editor’s note: InterFace Conference Group, a division of France Media Inc., produces networking and educational conferences for commercial real estate executives. To sign up for email announcements about specific events, visit www.interfaceconferencegroup.com/subscribe. At the 13th annual InterFace Seniors Housing Southeast conference, which took place on Aug. 25 at the Grand Hyatt Buckhead Hotel in Atlanta, a panel of owners and investors spelled out just how important the role of the operator really is in the current seniors housing environment. Shae Portnoy, vice president of investments…

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How Smart Builders Cut Costs During Preconstruction

Kristin Harlow — Thu, 03 Sep 2026 18:10:00 +0000

In today’s market, builders are met with longer decision-making timelines and increased scrutiny over budgets before projects are approved, according to John Line, executive vice president with Farmington Hills, Michigan-based Huntington Construction. Last year, CBRE reported that the construction pipeline continued to contract across all property types, estimating that construction costs increased 35 percent since 2020. A J.P. Morgan report from earlier this year states that rising costs, largely fueled by tariffs and trade policy uncertainty, present challenges for commercial real estate. For instance, imported aluminum, copper and steel parts are subject to a 50 percent tariff. “While there’s still a healthy pipeline of opportunities, clients are carefully evaluating scope and costs before breaking ground,” says Line. “As a result, preconstruction and collaboration are more important than ever, and contractors are expected to provide strategic guidance long before construction begins.” Kinjal Patel, president of Chicago-based McHugh Construction, echoes this sentiment. He says success in today’s market depends on disciplined project selection, early planning and closer coordination with clients and trade partners during preconstruction. McHugh has utilized time during slower development cycles over the past few years to strengthen subcontractor relationships, procure long-lead-time materials earlier and leverage emerging technology to improve…

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Why America’s Buildings of Today Are Still Preparing for Yesterday’s Emergencies

Taylor Williams — Tue, 01 Sep 2026 11:40:00 +0000

By Ernie Williams, CEO of Go To Green Commercial buildings have changed dramatically over the past several decades. They’re taller, denser, more connected and increasingly filled with technologies that can control everything from temperature and lighting to access, energy consumption and security. Yet when an emergency occurs, many of those same buildings still rely on surprisingly old models for getting people to safety. A traditional evacuation plan works best when an emergency is predictable. A fire alarm sounds; occupants move toward the nearest available exit, and first responders arrive to address the source of the danger. The problem, of course, is that many modern emergencies aren’t static. Fire and smoke can spread; severe weather can make one side of a property more dangerous than another, and active threats can move through a building. Floodwater can block an exit that was accessible minutes earlier. In a large multifamily, commercial or mixed-use development, thousands of people may need to make decisions at the same time without having the same information. Property owners and operators may need to plan for severe thunderstorms, flash flooding, hurricanes, extreme heat, wildfires, power disruptions and human-generated emergencies. The response required for one event can be entirely different…

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What’s Changing in Senior Living Sector, And What Does It Mean for Construction?

John Nelson — Tue, 25 Aug 2026 11:40:00 +0000

Senior living has changed a lot in the past five or six years. The shift was underway before the pandemic, but it has accelerated recently. Now, there is a clear move away from institutional designs toward communities that feel more like hotels, with a focus on wellness, flexibility and the resident experience. The way spaces are designed has changed as well. In the past, facilities had large, central common areas. Now, layouts focus on flexible use and smaller, spread-out gathering spaces. There is also more focus on connecting with the outdoors, so courtyards, walking paths and shaded seating are now standard. Industry research shows that spaces that support social engagement and health are important, which is guiding how buildings are now designed and built. We have seen these changes firsthand through our work across the senior living sector. ANF recently completed Wellspring Apartments in Miami, a complex that reflects the growing need for well-located, intentionally designed housing for older adults. We are also building All Seasons Delray Beach for Beztak, a luxury senior living community centered on hospitality, lifestyle and elevated amenities. In Pembroke Pines, we are completing the final phase of Douglas Gardens for McDowell Housing Partners and Miami…

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C-PACE Financing Is Meeting the Moment

John Nelson — Thu, 20 Aug 2026 11:33:00 +0000

The cat is out of the bag for Commercial Property Assessed Clean Energy financing, or C-PACE. C-PACE financing executions across the country totaled a little more than $2 billion in both 2023 and 2024, according to PACENation, which tracks and advocates for C-PACE financing. The nonprofit association hasn’t published the final numbers for 2025 yet, but CNBC reports that Nuveen Green Capital closed more than $2 billion in C-PACE loans across 53 deals last year alone. “In less than a decade, C-PACE has grown from a niche, nuanced product to institutionally recognized,” says Rafi Golberstein, founder and CEO of PACE Loan Group (PLG), a C-PACE lender based in Minneapolis with regional offices in New York City, San Diego and Chicago. “That’s both a result of the growth of the industry to this point and what’s fueling its next phase. As the clientele has moved from mostly regional developers to include the large, national developers, the deal size has increased as well.” Earlier this year, PLG secured a $100 million C-PACE loan for Patmos, an artificial intelligence (AI) data center operator. The company is converting a glass-encased building in downtown Kansas City that once housed the operations of The Kansas City…

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More Than Shopping: How Retail Design Has Evolved Beyond Conveyance of Goods, Become Amenitized

Taylor Williams — Tue, 18 Aug 2026 11:42:00 +0000

By Randall Shearin With more food-and-beverage (F&B), outdoor spaces and entertainment uses prevailing, retail centers are being viewed by many consumers and communities more as a place to spend time than purchase goods. While goods and services may still be at the forefront of their function, many developers have taken their cues from resorts and parks to understand how to give consumers an experience worth paying for. “Retail developers increasingly recognize that consumers are seeking experiences that encourage longer visits and repeat trips,” says Neil Feaser, president of RKAA Architects. “Our response is to design projects that support multiple reasons to visit. The goal is to create destinations where shopping is one component of a broader experience that includes dining, recreation, social engagement and community interaction.” Over the past decade, retail design has continued to evolve as dining, entertainment and public spaces become more prevalent features. Programming — in the form of arts events, farmer’s markets, concerts and live entertainment — has also become a big part of the community attraction factor at many centers. These components have become just as important as retail to the draw of a center for many developers and communities. And with retail space at…

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Outpatient Care Is Becoming Valued Member of Mixed-Use Developments

John Nelson — Thu, 13 Aug 2026 11:30:00 +0000

By Emily Buchanan of Gensler For decades, healthcare delivery was something that happened somewhere else: a hospital campus on the edge of town, a medical office park behind a parking garage, a clinic that required a car and a calendar. Today, patient expectations have shifted. Health systems chase convenience, and outpatient facilities are moving closer to where people live. For mixed-use developers, that shift represents one of the most compelling value propositions available: healthcare not as a use, but as an amenity. The case isn’t complicated. Locating outpatient clinics within a mixed-use development improves quality of life for residents, provides healthcare tenants with a stable and captive patient base and gives medical staff a commute that doesn’t erode the beginning and end of every shift. When all three outcomes land in the same project, developers are not just filling square footage; they are building a functioning community. Developer’s perspective Healthcare tenants are, by almost every measure, among the most valuable tenants a mixed-use developer can attract. They sign long-term leases, they withstand economic downturns, and they generate consistent daily foot traffic that benefits the retail and food-and-beverage tenants around them. Pharmacies, fitness studios and cafés thrive when an outpatient clinic…

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Multifamily Operators Seek Competitive Edge

Kristin Harlow — Tue, 11 Aug 2026 12:57:13 +0000

The multifamily industry is facing a number of headwinds such as high operating costs, increased vacancy and stagnant rent growth. Property managers are leveraging artificial intelligence (AI) and focusing on recruitment and retention of workers as solutions. There’s also a strong emphasis on resident satisfaction, with the goal of providing top-notch maintenance and property events to help secure lease renewals. In June 2025, operational expenses in multifamily assets were roughly 39 percent above where they were prior to the pandemic, according to commercial real estate data analytics firm RealPage. In the first quarter of 2026, three of the six apartment market regions that CBRE tracks posted negative year-over-year rent growth (Mountain, South Central and Southeast). The national vacancy rate was 4.8 percent, up slightly from a year ago but down 20 basis points from fourth-quarter 2025, according to CBRE. Amid these pressures, the role of the property manager is vital in helping shape resident satisfaction and maximizing operational efficiencies. Jim Cunningham, president of Marquette Management in Naperville, Illinois, says the multifamily industry is in a period of transition. “Operators are navigating higher operating costs, increased regulatory scrutiny and a more value-conscious renter, all while expectations for service and experience continue…

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Lee & Associates’ Q2 Report: Office, Retail Markets Gain Momentum as Industrial, Multifamily Face Headwinds

Sarah Daniels — Thu, 06 Aug 2026 11:00:00 +0000

The Lee & Associates’ 2026 Q2 North America Market Report finds that commercial real estate fundamentals are improving, but the pace of recovery varies significantly by property type and market. Office and retail sectors are showing renewed momentum, industrial demand continues to recover unevenly amid trade uncertainty and multifamily fundamentals are stabilizing as new supply begins to moderate. Across all sectors, investors and occupiers remain highly selective in an evolving market. Sponsored: Download Lee & Associates’ 2026 Q2 North America Market Report. Industrial Overview: Recovering Demand Is Uneven Amid Trade Tensions Demand for North American industrial space in the second quarter continued to recover from slowing caused by heightened trade uncertainties that began early last year. Modest tenant expansion in the United States remains well off pre-COVID average growth. In the United States, 44.4 million square feet of net absorption in the second quarter brought the mid-year total to 77.1 million square feet, about 30 percent less than the pre-pandemic five-year average. First-half deliveries fell to 93 million square feet, which included 44.4 million square feet in the first quarter — the least in seven years. Although supply additions have moderated, the pullback in tenant demand over the past three years…

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What’s Next for the U.S. Office Market?

Matthew Auchincloss — Tue, 04 Aug 2026 15:47:25 +0000

By Matthew Auchincloss The U.S. office sector may never be going back to pre-pandemic utilization levels, but enough time has elapsed and data compiled to make the case that the asset class is stabilizing. According to data from CoStar Group, leasing activity remained steady in the second quarter of 2026, with 115 million square feet of new leases signed (renewals were not included in the data). That remains approximately 9 percent below the quarterly average from 2015 through 2019 but is far above the leasing volume from 2020 and 2021. The national vacancy rate is down 50 basis points from one year ago and 20 basis points in the past quarter, currently sitting at around 18 percent, according to CoStar. Rental rates are also up, averaging approximately $38.06 per square foot nationally — a 2.3 percent increase from last year, according to Colliers. Class A rates currently sit around $43.76 per square foot, with a sharp divide between central business district (CBD) rates and suburban product. CBD rates dropped 10 basis points from the first quarter, but the $52.52 per square foot price tag is still up slightly year-over-year (70 basis points). Suburban rates are much lower at approximately $37.74…

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Beyond the Mirages: Finding Yield in a Normalized Real Estate Market

Kristin Harlow — Thu, 30 Jul 2026 12:30:00 +0000

By Dan Levitt, Ryan Cos. If it feels like the commercial real estate market has been running in place for the last three years, you’re not alone. There has been a sense of anticipation, and even inaction, that has defined the landscape as we waited for catalysts that have yet to materialize. Many of us have been distracted, looking for silver bullets in Federal Reserve rate cuts, anticipating a flood of distressed deals or chasing niche returns in preferred equity. However, these distractions have obscured possible opportunities. To break the stalemate and drive the next recovery, we must shift our focus from these mirages and get back to the fundamentals of traditional equity investing. The 10-year reality The most widely accepted misconception in our industry right now is that Federal Reserve rate cuts will serve as the silver bullet for commercial real estate — though expectations for rate cuts have diminished significantly lately. Over the past several years, even as short-term interest rates have come down by over 150 basis points, we’ve seen headline after headline anticipating that new reductions to the federal funds rate will compress cap rates and send valuations rising again. This notion fundamentally misinterprets how institutional…

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