June 10, 2024

Equity investing will stay limited until the money-center banks return to the sector and more transactions hit the market. Despite there being an enormous amount of equity capital on the sidelines, JV equity is much more selective. Anticipate a greater interest in pref equity versus traditional JV equity from institutional investors going forward. In times of uncertainty, many investors will prefer pref equity over JV, especially as return demands rise. Investors like the risk-adjusted returns with pref equity behind stabilized deals. Many equity investors are sitting on money, just waiting to see what the economy and rates will look like during the second half of the year. More