Real Estate

Real estate is positive as a long-duration asset, with investor value extending beyond seven years supporting a structural constructive outlook.

REITs could offer a powerful opportunity as constrained construction costs limit new supply while office, industrial, and retail markets rebound.

Real estate faces a headwind as yields above 5% make Treasury bonds more attractive than low-volatility, higher-yielding property stocks.

Multifamily distressed sales rose to 4.7% of deals in Q2 from 1.5% in Q2 2025 as lenders increasingly bring troubled assets to market.

Real estate tends to underperform while the Fed is hiking rates because interest-rate-dependent assets face pressure from higher short-term borrowing costs.

U.S. real estate funds face growing redemption pressure, stalled liquidity, and widening secondary-market discounts as investors reject prior assumptions of resilient returns.