Over the last three real estate cycles—since 1995—JLL data shows the amount of venture capital funding has gone hand-in-hand with stock market levels, with changes in VC funding normally preceding the NASDAQ by one quarter.
Q4 saw a 31.7% drop in VC funding, and with all of these recession rumors floating about it might be time to stand up and take notice. However, there's been a VC drop in 12 of the last 24 quarters, so the news isn't too shocking, and with massive $1B-plus funding rounds becoming the norm, changes in VC have become more pronounced, according to JLL.
Still, combined with oil's collapse, concerns over a coming Fed rate hike, and stock markets diving in China, major banks have seen the risk of a global recession rising, something real estate moguls like Sam Zell have been warning of for months.
