What Has Happened To Commercial Real Estate & How You Can Capitalize
Why It Matters
The dynamic shifts where returns now depend on operational skill, not just capital—so operators who can improve performance stand to profit while passive investors face execution and liquidity risks; policy and state-level tax climates will keep redirecting capital and shaping regional real estate winners and losers.
Summary
Multifamily and broader commercial real estate boomed after policy and capital shifts: the 2017 tax code changes (100% bonus depreciation and cost segregation) and prolonged low interest rates post-COVID funneled family offices and private equity into the sector, compressing cap rates and inflating prices. Sophisticated investors increased real estate allocations, often prioritizing tax and appreciation benefits over traditional cash-on-cash returns. Many new capital owners lack operational expertise, and with the resale market frozen, assets that were bought to flip now must be run—exposing gaps in asset management. That mismatch has created distress and tactical opportunities for experienced operators to drive value through hands-on operations rather than waiting for market exits.
Comments
Want to join the conversation?
Loading comments...