Underpinning this activity in commercial real estate is an audience of average Americans who have been trained to believe that asset prices only go up...
Couldn't agree more. Having been involved in all aspects of the multifamily industry through multiple cycles, I share the concerns about irrational exuberance that is too often manifested in fantastical underwriting enabled by wishful group-think. Those willing to deliberate more critically about what is truly reasonable and consider the broader implications of Fed policies that may appear attractive in the short-run are a rare breed, but they consistently win in the end.
You nailed it. We saw what happened with the syndication-bridge loan bubble. What we're seeing now is more muted, but still an industry badly in need of marking to market. If only the Fed and FedGov would let the natural healing happen.
Couldn't agree more. Having been involved in all aspects of the multifamily industry through multiple cycles, I share the concerns about irrational exuberance that is too often manifested in fantastical underwriting enabled by wishful group-think. Those willing to deliberate more critically about what is truly reasonable and consider the broader implications of Fed policies that may appear attractive in the short-run are a rare breed, but they consistently win in the end.
You nailed it. We saw what happened with the syndication-bridge loan bubble. What we're seeing now is more muted, but still an industry badly in need of marking to market. If only the Fed and FedGov would let the natural healing happen.