Schwab Network: Commercial Real Estate 'Head Fake' Amid Challenges
Greg Friedman sits down with Schwab Network to talk about the outlook for CRE in 2025
Grupo Peachtree ha ampliado su presencia nacional con la apertura de su primera oficina fuera de su sede de Atlanta en el centro de Austin. Esta medida se alinea con la estrategia de crecimiento de la compañía y su compromiso con el mercado inmobiliario comercial de Texas, según la compañía.
Con importantes inversiones en todo el estado, incluidos los desarrollos en curso en Dallas y San Antonio y un próximo proyecto en Austin, el establecimiento de una oficina en la capital del estado se ajusta a la visión a largo plazo de Peachtree. El entorno empresarial y las perspectivas de crecimiento de Austin la convierten en un lugar ideal para fortalecer el alcance y las asociaciones de la empresa, según la empresa.
La conexión de Peachtree con Austin es profunda. La firma ha sido reconocida entre los Longhorn 100, una distinción que honra a las empresas de más rápido crecimiento dirigidas por exalumnos de la Universidad de Texas. Además, Greg Friedman, director gerente y director ejecutivo de Peachtree, graduado de la Universidad de Texas, apoya activamente a la institución al formar parte del consejo asesor de fondos inmobiliarios de la Escuela de Negocios McCombs de Texas.
«Nuestra expansión en Austin marca un hito emocionante para Peachtree Group», dijo Friedman. «Texas es un mercado fundamental para nosotros, y establecer una oficina en el corazón del centro de Austin nos permitirá respaldar mejor nuestra creciente cartera y profundizar nuestras relaciones en la región. Con nuestros proyectos en curso en todo el estado y nuestros fuertes vínculos con la comunidad de la Universidad de Texas, esta medida refuerza nuestro compromiso con la inversión y el crecimiento a largo plazo en Texas».
La nueva oficina se encuentra en el edificio 100 Congress y servirá como centro para las actividades de inversión y desarrollo de Peachtree en la región.
Relacionado publicaciones
Si te ha gustado este artículo, lee estos comunicados de prensa y puntos de vista relacionados.
The Outlook For Commercial Real Estate in 2025
Commercial Real Estate 'Head Fake' Amid Challenges
Despite markets bracing for more deregulation under President-elect Donald Trump, Greg Friedman says higher interest rates will damage commercial real estate. He believes regional banks will stay conservative in a high-rate environment, which can squeeze the CRE market. However, Greg says his firm has seen success in multi-family and retail spaces.
Watch More on the Schwab Network
Yahoo! Finance: The hotel sector benefits from 'muted' supply
Peachtree CEO Greg Friedman recently shared insights on the market with Madison Mills of the Yahoo Finance show Catalysts.
Yahoo – Catalysts - The commercial real estate market (CRE) has struggled amid a prolonged high-interest-rate environment, but hotels have continued to outperform as demand surpasses supply. Peachtree Group CEO Greg Friedman joined Catalysts to discuss the market outlook.
Friedman explained that the pandemic "muted" new supply growth, and as demand has picked up with limited new construction, he believes the hotel industry is benefiting from supply being constrained. He points out supply in the hotel sector is growing at a 40% reduction, while demand remains resilient.
Friedman notes that "from an investment perspective," hotel assets trade at higher cap rates. With rates expected to remain elevated, Friedman states, "there's less negative leverage," making the sector increasingly attractive.
Regarding office spaces, Friedman sees potential for recovery. "I think we're heading towards a bottoming across the office sector," he said, pointing to rising vacant spaces being repurposed and transformed for new uses. "I think we're heading towards it being more investable," he added.
To watch more expert insights and analysis on the latest market action, check out more Catalysts here.
Peachtree Group's Market Update w/ Greg Friedman & Mark Zandi
Mark Zandi, Chief Econmist at Moody's Analytics joined Greg Friedman, Managing Principal and CEO of Peachtree Group for a 4th Quarter Market Update.
As we move into 2025, Peachtree Group remains optimistic about the U.S. economy. While risks persist—from policy shifts to stretched markets—the underlying fundamentals are strong. This sentiment was echoed by our recent guest speaker, Mark Zandi, Chief Economist at Moody’s Analytics, who shared his insights on the economy’s resilience and the challenges ahead, particularly for commercial real estate.
Economic Highlights and Key Insights
Mark emphasized the exceptional performance of the U.S. economy, with GDP growth expected to range between 2.5% and 3%, driven by increased labor participation and productivity gains. The labor market remains strong, with unemployment hovering around 4%, and households—especially those in the top income tiers—benefit from strong asset values and low debt-service ratios. However, he noted the pressures on lower-income households, who are feeling the strain of inflation and high-interest debt. This contrast contributes to a gap between strong economic data and public sentiment.
Risks and Projections for 2025
He outlined several key risks that may shape the economic landscape in 2025:
- Tariffs and Immigration Policies: Anticipated increases in tariffs and stricter immigration rules could amplify inflation and disrupt labor markets, especially in industries like construction and agriculture.
- Asset Market Volatility: Stretched valuations and policy-driven fiscal deficits could heighten market instability.
- Interest Rate Outlook: The federal funds rate is projected to decline to 4% by early 2025, with a further reduction to 3% by 2026. Meanwhile, the 10-year Treasury yield, a key benchmark for CRE valuations, is expected to remain flat, between 4% and 4.5%.
Commercial Real Estate and Private Credit
Mark highlighted the explosive growth over the past decade on private credit, now standing at eight times its 2010 size. While recognizing the risks of this rapid expansion, he noted that stabilizing economic fundamentals is a significant mitigating factor.
He also addressed the current state of CRE valuations, acknowledging a significant correction since 2022. Asset prices are down 10–20% from their peaks, depending on asset type, but he expressed cautious optimism for future returns as valuations in many segments approach fair value. Challenges remain, however, as muted transaction volumes and uncertainty around intrinsic values make price discovery difficult in a higher interest rate environment. However, he concluded by emphasizing that CRE, having undergone a meaningful correction, is uniquely positioned for potentially stronger returns.