Yet Another Value Podcast Rhizome Partner's Bill Chen's post-NAREIT takeaways
Jun 19, 2025
In this discussion, Bill Chen, a seasoned expert from Rhizome Partners, shares his insights on the multifaceted world of real estate investing post-NAREIT. He highlights key trends such as the resilience of public REITs against market stresses and the shifting dynamics in rental markets, especially in NYC and the Sunbelt. Bill navigates the complexities of grocery-anchored retail investments and the impact of AI on operations. His analysis sheds light on valuation divergences and investment opportunities in today's competitive landscape.
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Public REITs’ Acquisition Strategy
- Public REITs buy new ground-up multifamily developments around 5% cap rates, seen as great deals.
- Private developers hold assets longer, so 5% cap rate buys by REITs represent favorable acquisitions.
NYC Fundamentals Recover Despite Politics
- New York City multifamily fundamentals have improved despite political concerns and rent regulation risks.
- Development is constrained by strict regulation and lack of new supply, underpinning long-term value.
AI Boosts REIT Operational Edge
- AI is accelerating operational efficiencies in multifamily REITs via tenant screening and leasing automation.
- Large REITs have scale advantages to implement these technologies, creating cost advantages over smaller landlords.