Family offices increase selectivity in real estate investments amid high interest rates
- 1Uncertainty regarding interest rate directions has made real estate investments by family offices more selective.
- 2Funds exceeding 65% of HB Wealth's operating asset or fund-level leverage limits are not recommended to clients.
- 3Cresset's Chief Investment Officer warns of the risk of declining data center values after 15-year lease terms end due to technological changes.
So what's the key point?
Asset management companies are scrutinizing real estate investments very closely because interest rate movements are uncertain. They are not recommending funds that use more than 65% leverage and are also being cautious about the risk of data center values falling.
Source CNBC · View original ↗
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