Can 2025 be the year for CRE’s big recovery?

David Politano, Managing Director, Head of Debt Strategies, Real Estate, at MetLife Investment Management, discusses challenges and opportunities in High-Yield Commercial Real Estate Debt.

David Politano
David Politano, Managing Director, Head of Debt Strategies, Real Estate, at MetLife Investment Management.

Andrew Putwain: Where is the Commercial Real Estate (CRE) market at currently – can you discuss what the challenges and opportunities are?

David Politano: The commercial real estate sector is emerging from what the next generation of industry practitioners will call the “2020s Real Estate Crisis.”

Prices and transaction volumes are improving, but the recovery process following a downturn has historically required two to three years to fully resolve. Although this two to three year-cycle creates stress for existing portfolios, it has historically also been an ideal entry point for new investments. The impact of the market volatility over the last week or so due to the ongoing tariffs/trade war situation is hard to predict at this time. If we are pushed into a recession, we can expect the recovery to be delayed if that is the case.

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