Special Market Update - Investment Real Estate
Blair V. Wood - Partner, Capital Markets
Kevin G. Joseph - Partner, Capital Markets
As the U.S. economy continues to be impacted by COVID-19 and social distancing, real estate activity throughout the country is changing. To provide our Capital Market clients with insight and direction, the WWM team continues to conduct diligence on the state of the market to better provide our clients with accurate, and up to date market information.
Real Estate Buyers & Capital Markets
Large national and international REITs have proven to be the most prepared for uncertain times like these. With billions in liquidity, national and international players remain ready to underwrite new deals, complete existing ones and explore creative opportunities to move deals along. Many of these buyers purchase “all cash” and are not reliant on financing availability.
Existing investment criteria are more strictly being followed for some sale leaseback investment deals as certain industries are disproportionately impacted. Buyers are placing a special focus on businesses that are stable and able to withstand turbulent times, have highly supportable rents, businesses that are fully operating and businesses whose yields and structures are accretive.
Sellers of Real Estate
Real estate holders looking to monetize their real estate portfolio can be confident knowing that there are active investors in the marketplace. Owners of large and small businesses are still using real estate as a tool to fund business objectives both in the near and long term. Many large and small business owners are being negatively affected by the social distancing requirements. Business owners whose operations remain fully functioning are best positioned for an investment real estate transaction.
WWM will continue to monitor changes in the marketplace and update our clients accordingly. Given the current environment, sellers of real estate should continue to work with their real estate partners to engage qualified buyers that are prepared to work through these challenging times. Not every buyer is prepared to deliver in the current environment. WWM’s unique industry relationships are helping to mitigate risk and uncertainty by pre-qualifying buyers, marketing investment packages to the right buyers, identifying certainty of close, and positioning real estate packages in the market at the right time.
Our team continues to work very hard and aggressively on our clients behalf through these challenging times. Our team members are available 24/7 for phone or video conversations.
WWM is an established, successful, client-focused real estate advisory firm headquartered in Cleveland, Ohio. Since 1968, we have served as a strategic advisor to private equity, family offices, financial advisors and public/private companies. We provide proactive investment advisory to drive returns and increase enterprise value for our clients.
For more information please visit wwmrealestate.com.