Executive Summary
Despite ongoing market volatility, we believe the case for value-add real estate investment in the United States makes sense today due to five key factors.
- U.S. real estate values have gone through a major correction. Values stabilized in all property types in late 2024, outside of the office sector, and are expected to rebound in the coming years.
- There is a need for capital to develop new product or reposition and modernize existing and obsolete stock to meet evolving space needs.
- Supply pipelines are thinning rapidly as high construction costs and lower property values are curtailing construction starts.
- Today’s low liquidity market environment, in conjunction with a healthy outlook for property fundamentals, offers an attractive entry point.
- The value-add opportunity set is expanding to a new group of real estate sectors with elevated and increasing institutional capital interest.
