Blackstone’s Post

Good commentary from my colleague Darris Cassidy. This real estate downturn is very different than the last one in so many ways. Sooner or later there will be a rush of capital back into the market and many sponsors, fund managers, and HNW investors are poised. Time will tell how long it takes. #realestate #capitalmarkets #fundsomm

Blackstone has turned bullish on CRE acquisitions. Scooping up devalued assets and “not waiting for the ‘all clear’ signal”. Blackstone are essentially betting that The Fed will initiate a Biden reelection inspired call option (rate cut). I’m of the opinion that they are right. We will likely see at least one rate cut before the election. What are your thoughts? Do you think we’ve seen valuations bottom across most (other than Office/CMBS) CRE asset classes (understanding they have very different secular and segment specific drivers)?

Indeed, as in many real estate investment considerations (unless you're flipping) time horizon is long term, so waiting for optimal "all-clear" sign is generally to be avoided. Time to be "greedy" in real estate?

Opportunities or a logical step? Blackstone is talking about opportunities in the commercial property markets. What may sound somewhat anti-cyclical against the backdrop of the still difficult market conditions could also be seen the other way around. ▶ In terms of a logical step: the ESG requirements for all properties are increasing. ☝ However, completions of truly ESG-compliant commercial properties are falling significantly. Trends already show that user demand massively exceeds the supply of top ESG buildings. The already existing stock of buildings which are on the market for 10-15years (+ 2 years of construction,+ 2-5 years of planning and design), can´t compete with the new top ESG compliant projects we have in a pipeline. And where there is user demand, there is logically also investment demand.

Here is the caption for this reel - Unlocking the Potential: Exploring the Allure of Emerging Real Estate Markets 🏡 From lower acquisition costs to exponential growth potential, discover why investors are turning their gaze towards these dynamic landscapes. Ready to seize the opportunity? Let's talk - https://lnkd.in/emCuiHq8 . . #EmergingMarkets #RealEstateGrowth #UnlockPotential #KingshurstCaptial

Billy Stern, Director of Investment Management, explains the "Flight to Quality" that we are seeing from the NASDAQ to more commodity-based holdings. Tune in to his latest market update video for the details. Now is a great time to leverage real estate inside your portfolio and target stability and growth in this volatile investment environment. You can learn more by scheduling some time with an Investor Relations team member. Click the link to schedule today ↓↓↓ https://lnkd.in/eTV-j4sq #InvestInYourFuture #InvestmentSolutions #MoneyMatters

Given the current market context, and according to Blackstone President (Jon Gray) to Blommberg News , the Real estate prices have bottomed and there’s a great opportunity to move fast and buy assets at beaten-down prices (with the current wave of buying opportunity). Our due diligence and sustainability/Decarbonisation advisors are also watching an interesting focus on some market segments, so , we are happy to discuss/support on such opportunities! ;-) https://lnkd.in/eQZnKs_B #realestate #duediligence #transaction

Billy Stern, Director of Investment Management, explains the "Flight to Quality" that we are seeing from the NASDAQ to more commodity-based holdings. Tune in to his latest market update video for the details. Now is a great time to leverage real estate inside your portfolio and target stability and growth in this volatile investment environment. You can learn more by scheduling some time with an Investor Relations team member. Click the link to schedule today ↓↓↓ https://lnkd.in/eTV-j4sq #InvestInYourFuture #InvestmentSolutions #MoneyMatters

LP Week was great and here is Jon Gray just off the stage, sharing that (1) we are able to separate the headlines, which are super-negative on real estate but actually provide opportunity to invest into this uncertainty and (2) we are leaning in as we see less new construction, rates coming down, spreads tighten. Message is clear - you want to invest before the all-clear sign. (Separately, it was great to connect with lots of our private wealth leaders amidst a sea of the biggest and most sophisticated institutional investors.)