Real estate isn't one market. Office, multifamily, and industrial properties follow different cycles and respond to different economic forces. A headline like "real estate down 30%" means nothing without knowing which sector and which city.
When people talk about real estate, they just lump it together. Different asset classes in real estate perform differently during different market cycles.
You're spot on there. You see the headlines, real estate values are down 30%. It's annoying because it's— what are you measuring? There's not one real estate market. There's hundreds of real estate markets. Which part of the country and which submarkets are you bringing into that? Because they all perform differently. They have different drivers of what's growing or not growing in different areas. And then you have different asset classes. So when people say commercial real estate is not doing well or it's headed for some pretty big challenges, most people are referring to office. And it is pretty obvious, most people understand why it's struggling. But other asset classes, it's a very different story. There's some bumps in different markets for multifamily, and then industrial is completely different set of demand drivers. So there's other things that are driving demand and fundamentals in every asset class.
