Michael Van Konynenburg Michael Van Konynenburg

How much will there be to gain in the next recession? Investors are predicting a recession in the next one to two years, and some are waiting on the sidelines to take advantage of opportunities. However, at the Allen Matkins’ View From the Top conference at the Beverly Hilton this week, Michael Van Konynenburg, president of Eastdil Secured, gave an economic update and posed the question. He pointed out that with little over-leverage in the market, there will be few forced sellers in the next recession, unlike last in the last recession. As a result, waiting for a recession may not be advantageous.

Now, the market is in an equilibrium for investment sales volume. Volumes peaked in 2015, and since have remained steady. This year, overall sales volumes are trending down. Additionally, volumes are trending down in every asset class with the exception of multifamily, which has trended up, according to Van Konynenburg. Still, industrial is the most sought after asset class for investment and manufactured housing has had the most growth. Value-add and opportunistic opportunities are also among the most popular investments. Long-term leased office assets and well-located, irreplaceable retail is also popular for investment.

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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