Bob Steers, Executive Chairman of Cohen & Steers, recently had a conversation with Howard Marks, co-chairman of Oaktree Capital Management, for the 2023 Real Estate Luminaries Series, which was hosted by The Steers Center for Global Real Estate at Georgetown University.
Bob and Howard discuss the current state of financial markets, the impact of recent banking stress within real estate and Howard’s famous Sea Change memo [excerpt below].
“Where in my 53 years in the investment world, I’ve seen a number of economic cycles, pendulum swings, manias and panics, bubbles and crashes, but I remember only two real sea changes. I think we may be in the midst of a third one today.”—Howard Marks.
FURTHER READING
A new market regime for REITs
A regime shift to lower rates is a favorable backdrop for REITs, in our view.
The Real Estate Reel: The potential benefits of blending listed REITs and private CRE
Adding listed REITs at certain levels to a private real estate allocation has been shown to increase performance, reduce volatility, and limit drawdowns.
The Real Estate Reel: Is office as problematic as you think?
Office is not a very big part of the commercial real estate market. Bank exposure to office is also a lot lower than the media headlines would suggest. And newer buildings are actually still seeing strong demand.