Public and Private Real Estate: Divergences, Harbingers, and Opportunities
May 23, 2023 | Edward F. Pierzak | Nareit
Public and private real estate markets can diverge, as they did last year. Although the increased uncertainty associated with such dislocations may be unsettling, these environments provide investors with tactical and strategic investment opportunities. With REIT implied capitalization (cap) rates significantly higher than private real estate transaction cap rates, the attractiveness of public equity REITs has increased. Today, REITs offer investors access to institutional-quality properties with best-in-class operators at substantially discounted prices relative to the private market.
