Real Estate Through the Cycle: How Private-Market Real Estate Can Deliver Recession-Resistant Results
Following a period of rapid interest rate hikes and gradually moderating inflation, the economy has felt poised for a shift for some time. The economy did contract slightly for two quarters in 2022 (the technical definition of a recession). But the general economic climate remains one of gradual moderation — the much-discussed “soft landing.” With the Fed opting to drop benchmark rates by 50 basis points at its September meeting, without any troubling economic data, the dream of the soft landing feels alive and well.
Private-market real estate potentially offers unique advantages that can help investors achieve recession-resistant results by providing stable cash flows, capital appreciation, and diversification benefits. We argue that this thesis particularly holds during economic downturns relative to other asset classes. Let us say again out front: the full shape of market cycles will not be evident until a given cycle has passed. For real estate investors, the only antidote for uncertainty is diversification.
This whitepaper takes a current look at market cycles and what they mean for real estate investors, as well as how investors can capitalize on interest rate dynamics. Download these insights below: