It’s no secret that the commercial real estate industry has been facing some tough times lately. Real estate values across sectors have dropped by 15%–30% from their peak in 2022, and both supply and demand imbalances—and high rates—stubbornly persist. Meanwhile, an estimated $900 billion+ in debt backed by CRE maturing in 2024 will need to be paid off, refinanced, or further extended by lenders. Many capital structures that were put in place in a lower-rate world have become unsustainable, and this trend is only expected to continue.
Yet along with pain comes potential. And as we look at commercial real estate trends today, we see selective opportunities emerging amid a market capitulation that will likely unfold in the years ahead.
Real Estate Credit Investments Limited (LON:RECI) is a closed-end investment company that specialises in European real estate credit markets. Their primary objective is to provide attractive and stable returns to their shareholders, mainly in the form of quarterly dividends, by exposing them to a diversified portfolio of real estate credit investments.
