After weeks of anticipation, speculation and growing confidence on monetary easing, the Federal Reserve (Fed) cut its benchmark short-term interest rate by 25 bps at its July meeting.
In an era of low returns and high financial market volatility, core commercial and multifamily mortgage loan investments provide fixed income investors an appealing mix of strong relative value, low credit risk, and diversification benefits within a larger fixed income portfolio.
The potential for enhanced risk-adjusted returns late in the cycle
Of the main property sectors, multifamily remains highly sought after by investors. Fundamentals are currently healthy with vacancy rates in equilibrium. Rent growth is tracking well ahead of broader inflation.
In recent years, environmental, social, and governance (ESG) principles have increasingly taken centre stage in the commercial real estate investment world. This trend has been driven just as much by investors and occupiers looking to improve outcomes as by regulators seeking to set the agenda. In particular, ESG has become ever more important in urban housing given its enormous footprint and its ability to directly impact cities and the lives of residents