Podcast: Real Estate Conference Insights on Market Shifts and Investor Readiness

Location Cubed

In the latest episode of Weaver: Beyond the Numbers, Location Cubed, host Howard Altshuler, partner-in-charge of Weaver’s Real Estate Services, spoke with Selina McUmber, managing director of Weaver’s Valuation Services. Altshuler and McUmber discussed key takeaways from major conferences, highlighting how the market is loosening up, an increased investor appetite and what’s next for various asset classes like residential, industrial and data centers.

Key Points:

• Institutional investors are increasingly engaged, with more NDA signings and investment committee meetings suggesting heightened interest in market transactions. A significant increase in deal activity is expected by early 2025.
• The rise of alternative sources of capital such as debt funds and private credit has been notable, providing new avenues for borrowers.
• Investor interest is gravitating toward residential and industrial properties, with unique demand drivers for subsets like industrial outdoor storage (IOS) and data centers.

The conversation also touched on alternative lending sources. Traditional banks, burdened with existing loan books, are slow to reenter the market despite the lower rates. Debt funds and private credit have stepped in to fill the gap, as nontraditional lenders are more comfortable with asset takeovers in case of defaults. McUmber explained the growing role of alternative lending options, which now plays a critical part of funding real estate projects.

“There’s a lot of focus on alternative sources of credit. Lenders are hesitant, but debt funds and private credit aren’t afraid to take assets if things go sideways,” said McUmber.

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