Episode 301: REIT Industry Seeing Ample Capital, Rising Rents, & Elevated Asset Values at Year-End
The REIT industry is closing out 2021 in a position of strength, with ample financing available, brisk merger and acquisition activity, high and rising rents, and elevated asset levels, according to Evan Hudson, partner and real estate capital markets legal expert at Stroock.
\u201cThe credit markets are incredibly active, they\u2019re liquid, they\u2019re deep,\u201d Hudson said. He noted that in addition to common and preferred equity deals, largely through at-the-market (ATM) offerings, his firm is also seeing a high level of joint venture activity.
Following a productive year for M&A deals in 2021, Hudson expects all property sectors to be active in 2022. \u201cEven though we have price agreement (between buyer and seller) and the price is very high, a lot of deals are still happening.\u201d He stressed that what is new in the current environment is the entrance of \u201ccolossal\u201d non-traded REITs with hefty amounts of cash to deploy.