Market Outlook for '23

The forecasts and outlooks for 2023 have recently been released by the biggest banks and financial institutions around the globe. While you have to be aware that these opinions are coming from institutions that have a vested interest in high market performance, they are worthwhile to listen to. These reports can range in length as well as depth of information, but some focus more on the Real Estate market and provide valuable insight.

Tony Charles, Head of Research and Strategy, provides Morgan Stanley’s real estate portion, and explains that not only has real estate held strong through this downturn, but there are also more opportunities. Two of the three main points being “Strong fundamentals continue to offset capital market weakness for high-quality assets, even as capital flows back into equities and fixed income” and “We see potential for distressed or forced selling in the weakening environment, as well as increased M&A activity between public and private companies”. The potential for low entry points on distressed assets is incredibly exciting for developers specifically.

HSBC provided their entire market outlook, focusing on Q1, and outlined that “we enhance the diversification from bonds by adding hedge funds and a core allocation to private assets and real estate”.

All information must be taken with a grain of salt, and these forecasts are for higher-level national, and primarily a global perspective. When real estate is being discussed vaguely by these banks they are talking about REITs and publicly traded real estate funds. Real estate markets have many different nuances and factors, especially when you take them down to smaller scales. Keep an eye out for the next edition where we will discuss how these macro trends are translating to the Florida market.

We've identified an alternative short term investment project with minimal risk from our due diligence compared to traditional development projects. The project has a projected ROI of 167.2% on a $1.99 million equity investment.?This project involves a large piece of raw land and has a 18-24 month investment period.

Please feel free to reach out to [email protected] for an NDA and to lean more about our investment opportunities!