Jerry Cummins, partner at Sidley Austin, sat down for a video interview during Nareit’s REITworld: 2024 Annual Conference in Las Vegas on Nov. 18-21.
Reflecting on 2024, Cummins described the year as robust, particularly for REITs: “We saw a real flood of deals over the summer and into early September,” driven by favorable interest rates and narrowing credit spreads.
Despite this momentum, activity slowed toward the year’s end as market participants grew cautious ahead of the U.S. election. Cummins explained that public REITs maintained active at-the-market (ATM) equity issuance programs, enabling capital access when needed. Commercial mortgage REITs also thrived as investors sought non-bank financing options, paralleling private credit sector growth.
Looking ahead, Cummins anticipates a strong transaction environment in 2025, with potential for mergers, acquisitions, and portfolio financings, dependent on economic indicators like inflation and employment.
“A lot of the pundits are saying 2025 is going to have very good conditions for a high level of transactions,” he added.
Cummins also highlighted emerging trends, including senior housing developments driven by an aging population and surging demand for data centers fueled by technological expansion. These sectors have become focal points for Sidley Austin’s real estate and finance teams, reflecting broader industry shifts in response to evolving market dynamics.