Is fear holding back the real estate capital markets?
In this insightful clip from our discussion with renowned real estate economist Dr. Peter Linneman of Linneman Associates (formerly of the Wharton School), he explores the psychology of real estate markets in the current cycle. Dr. Linneman explains why big banks are hesitant to lend despite having funds, pointing to uncertainty around office markets and a general herd mentality among lenders that is preventing more capital from entering the space.
His analogy is striking: like walking a familiar street on a dark, rainy night, the rustle of leaves behind us can make even the most confident among us uneasy. In the same way, capital markets react to fear before transitioning to optimism—or greed, as he calls it.
When that shift happens, those who already have exposure to commercial real estate may stand to benefit as the flow of capital returns to the asset class.
Curious to hear more of Dr. Linneman’s perspective? Watch the full interview here.
✨ Contact us to learn more about the Versus Capital Real Estate Fund (VCMIX) and how it provides RIAs and their clients access to private institutional-quality commercial real estate.