The Investor's Podcast (We Study Billionaires) - The Investor’s Podcast Network TIP423: Real Estate Update w/ Ian Formigle
Feb 18, 2022
Ian Formigle, Chief Investment Officer at CrowdStreet and commercial real estate guru, shares riveting insights on the market's evolution since 2021. He discusses impactful trends driving top-performing markets and the effects of labor and supply shortages. Ian highlights inflation’s role in shaping investment strategies and identifies lucrative niche asset classes. The conversation also touches on the major migration trends in the U.S., particularly the exodus from states like California, signaling shifts that could redefine real estate opportunities.
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Future of Office Work
- The future of office work is trending towards a hybrid model, with around 37% of desks remaining empty.
- This shift is driven by employees valuing the time saved from not commuting.
Real Estate and Inflation
- Commercial real estate historically performs well during inflationary periods, outperforming the S&P by 9% on average in the 1970s and 80s.
- This makes it a good inflation hedge, with real returns of 5% annually during that period.
Multifamily Rent Growth
- Multifamily rent increases are driven by market demand and wage growth, allowing investors to assess potential rent increases.
- Demographic data and affordability analysis provide insights into future rent trends.
