Could There Be a CRE Upside to a Recession?

No one wants a recession. And yet, they do eventually come as part of the business cycle. While the pandemic recession was an anomaly in that sense, the chances are reasonable that in the near- to mid-term, the U.S. could experience another one.

Those companies that are strongest going into a recession are likely first up to see a benefit, though at the expense of others. “There are two ingredients that frequently insure a successful real estate investment: patience and working capital,” Jahn Brodwin, co-leader of the real estate solutions practice and a senior managing director at FTI Consulting, tells GlobeSt.com. “When an investor lacks one or both of these during a recession, it can lead to forced sales at inopportune times at less-than-optimal prices or worse, lead to foreclosures. The corollary to that, of course, is that those with the funds available today will likely have some excellent buying opportunities.”