Tim Bodner, U.S. real estate deals leader at PwC, was a guest on the latest episode of Nareit’s REIT Report podcast.
Bodner underscored a dynamic real estate market adapting to new economic realities and the importance of leveraging technological advancements to navigate challenges and seize emerging opportunities in 2024.
He noted that transaction volume in traditional real estate sectors continues to be lower than a year ago, reflecting persistent challenges such as valuation disparities between buyers and sellers. Meanwhile, ongoing shifts in the financing landscape are resulting in traditional lenders retreating while private credit, especially from insurance-backed alternative asset managers, gain traction.
Bodner also pointed to a notable expansion in what constitutes investable real estate, encompassing digital infrastructure like data centers and experiential properties such as wellness centers and marinas. This broader scope reflects a growing preference among investors for assets that offer experiential value beyond traditional real estate, he said.
Capital availability remains robust, Bodner said, driven by equity from high-net-worth individuals and family offices showing keen interest in U.S. real estate. In addition, Bodner stressed the importance of value creation amidst a higher interest rate environment, emphasizing strategies involving operational efficiency improvements, new revenue streams, and adaptation to climate-related risks.