Blackstone’s Jonathan Gray bearish on CRE

Miami /
Mar.March 07, 2016 03:00 PM

From the New York website: Jonathan Gray, the Blackstone Group’s head of real estate, recently joined the chorus of investors and analysts warning of an impending slowdown in the commercial property market.

While the national multifamily market remains strong, global volatility is slowing down financing through commercial mortgage-backed securities (CMBS) and reducing rates of return on commercial real estate, Gray said at the University of Texas Investment Management Company in Austin on Friday.

“Rates of return are definitely coming down,” he said, according to Bloomberg, because the property cycle is “much more mature.”

Persistently-low oil prices and economic volatility in China, Russia and Latin America have led to a slowdown in the creation of commercial mortgage-backed securities, as The Real Deal recently reported.

“It’s very difficult” to do securitizations today, Gray said, according to Bloomberg.

Blackstone’s massive rental portfolio, on the other hand, is doing fine, Gray said. The company’s Invitation Homes unit, which owns 50,000 single-family rental homes in the U.S., has seen 97 percent occupancy and rent gains of 5 percent per year.

The Real Deal profiled Jonathan Gray and Blackstone’s real estate business in depth back in August. [Bloomberg] Ariel Stulberg


Related Articles

arrow_forward_ios
Cross County Plaza (Madison Properties)
West Palm shopping center foreclosure suit leads to CMBS drama
West Palm shopping center foreclosure suit leads to CMBS drama
Southland Mall in Cutler Bay (Google Maps)
Lender takes control of struggling Southland Mall in Cutler Bay
Lender takes control of struggling Southland Mall in Cutler Bay
Jeffrey Soffer and Fontainebleau Miami Beach (Getty)
Fontainebleau Miami Beach’s $1B loan exits special servicing
Fontainebleau Miami Beach’s $1B loan exits special servicing
Southland Mall, 20505 South Dixie Highway in Cutler Bay with JLL's Tom Hall and Danny Finkle (Google Maps, JLL)
Southland Mall’s troubled $65M CMBS loan for sale
Southland Mall’s troubled $65M CMBS loan for sale
Westfield Broward mall, CEO Christophe Cuvillier
Westfield Broward mall’s $95M CMBS loan heads to special servicing
Westfield Broward mall’s $95M CMBS loan heads to special servicing
Clevelander South Beach
Party’s over: Clevelander South Beach closes after employee tests positive for Covid
Party’s over: Clevelander South Beach closes after employee tests positive for Covid
Southland Mall in Cutler Bay
Wells Fargo seeks to foreclose on Southland Mall in Cutler Bay
Wells Fargo seeks to foreclose on Southland Mall in Cutler Bay
Jamie Dimon of JPMorgan, Southland Mall and Investcorp co-CEOs Rishi Kapoor (top) and Hazem Ben-Gacem (Credit: Getty; Southland; Investcorp)
Investcorp wants out of struggling Southland Mall
Investcorp wants out of struggling Southland Mall
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...