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Executive Summary
Macroeconomic Outlook
• Bluerock’s 2024 full year outlook of declining inflation and moderating economic growth appears to be taking shape
• The Federal Reserve recently recognized its dual mandate and will strive to strike a balance between its 2% annual inflation target and unemployment risks1
• A moderating economy is providing cover for the Federal Funds rate to be cut faster than previously expected, which is likely to be disproportionately beneficial to private real estate
• The macroeconomic backdrop will create opportunities in alternative credit and private real estate sectors with strong fundamentals
Private Real Estate Outlook
• Strong fundamentals powering an inflection point in private real estate returns
• Conditions may present an attractive entry point as post-decline environments have historically generated outsized performance
• Sector and market selection will be key in current market environment
• Tax-advantaged investments will continue to be desirable given significant uncertainty in Federal and state income and capital gains tax rates
Industrial Real Estate Outlook
• Fundamentals for industrial are strong, powered by the continued growth of e-commerce
• Demand for industrial space will increase dramatically through 2028
Single-Family Rental Real Estate Outlook
• Demographic trends driving demand for single-family rentals
• Historically low levels of for-sale housing increasing demand for rentals
• Renting now significantly more affordable than owning
Alternative Credit Outlook
• Senior Secured Loans and Collateralized Loan Obligation (pools of Senior Secured Loans) offer attractive yield and low duration vs. other fixed income categories with comparatively low default rates
• Upcoming wave of maturing real estate debt may present compelling opportunities amidst need for re-financing
This information is educational in nature and does not constitute a financial promotion, investment advice or an inducement or incitement to participate in any product, offering or investment. Bluerock is not adopting, making a recommendation for or endorsing any investment strategy or particular security. All opinions are subject to change without notice, and you should always obtain current information and perform due diligence before participating in any investment. All investing is subject to risk, including the possible loss of principal. Bluerock cannot guarantee that the information herein is accurate, complete or timely. Past Performance does not guarantee future results.
