Greg Cope, partner at Vinson & Elkins, sat down for a video interview during Nareit’s REITworld: 2024 Annual Conference in Las Vegas on Nov. 18-21.
Cope discussed key regulatory issues and the capital market outlook for REITs. He highlighted tax policy as a major topic, noting that the potential extension of tax cuts under the incoming Trump administration would be beneficial for REITs, particularly with the continuation of individual tax cuts. However, he mentioned that changes from the SEC, including climate disclosure regulations, would still affect REITs, especially in California. Cope also anticipated possible changes in SEC rules to support private capital raising.
Regarding the capital market backdrop, Cope expressed cautious optimism. He noted that the market had improved in 2024, and while conditions could continue to improve in 2025, the uncertainty surrounding the Federal Reserve’s interest rate decisions made forecasts difficult. Proposals from the Trump administration could be inflationary, possibly leading to higher rates for a longer period. Despite this, Cope remains hopeful that transactional activity in real estate could boost market conditions.
Cope also discussed the M&A outlook for the coming year, pointing to promising activity in several sectors, particularly retail (both multi-tenant and net lease), data centers, health care, multifamily residential, manufactured housing, and self-storage. He expects continued M&A activity in these areas, though much will depend on the evolving political and economic landscape.