Wall Street Journal reporter Carol Ryan recently interviewed RXR Chairman and CEO Scott Rechler to discuss investment opportunities in commercial real estate. In her article, Ryan notes that the sector has struggled since the pandemic, with U.S. commercial property values down as much as 36% from their peaks.
These losses have left some institutional investors holding office properties worth less than their original purchase prices. Meanwhile, portfolio managers are increasingly turning their focus to infrastructure, data centers, and private credit, diverting capital away from traditional commercial real estate.
Using RXR’s analysis and referencing RXR’s recent acquisition of 590 Madison, Ryan points out that this creates buying opportunities for investors with available capital.
Ryan suggests that if today’s hot investments in assets such as data centers cool off, commercial real estate might shift from a sector once avoided to one everyone is eager to invest in.
