Large Investors Step Back From Real Estate As Bull Market Slows
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Big investors are reducing their real estate holdings as prices rise and investors in general grow cautious.
Blackstone Group, Brookfield Asset Management and Harvard Management Co, among others, picked up the pace of selling in 2016, with Brookfield alone unloading $3B worth of real estate, the Wall Street Journal reports. Experts said high prices, the length of the market cycle, large amounts of new supply and the recent increase in short-term interest rates are making investors cautious about real estate.
While few investors predict a crash reminiscent of the 2008 crisis, prominent investors stepping away from real estate is a sign the eight-year bull market is ending.