The Wall Street Journal: How to play the property meltdown
1. Are we really in a meltdown?
We don't think so. There's no doubt that a few subsectors are bracing for tsunamis. e.g., office. ...or that values are down across the board. But there are also meaningful strengths and resiliency in many subsectors. Throw out the broad brushes.
2. However, there's definitely stress, and the WSJ does a great job of highlighting key stresses...
- Valuation declines
- Bid-ask gaps
- Growing distress
- Public vs. private values
- Relative value of CRE
3. Note to FastTrack alumni...
Every one of the WSJ's insights relates to property valuation. We always say that valuation is the most important FastTrack module, and this is a great example of how valuation is the language of our industry. Those with exceptional valuation skills are at a big advantage.
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