Powered by MOMENTUM MEDIA
subscribe to our newsletter sign up

 

Is commercial property reaching the end of its cycle?

Forza Capital, Adam Murchie, high net worth, HNW, commercial property, property cycle, investing, investment management, wealth management,

Wealthy investors are choosing to sit on their money rather than invest in “fully priced” commercial real estate, suggesting the asset class may have reached the peak of its cycle, a property investment specialist says.

Property investment firm Forza Capital says its high-net-worth (HNW) clients have started selling property assets “which they feel are fully priced as the cycle reaches its peak”, noting headlines from several publications have reflected this.

“In late 2016, we started to receive more and more feedback from our family office and HNW clients, that they felt the cycle was very toppy,” Forza Capital director Adam Murchie said.

“Many of them advised that their cash holdings were at the highest proportion of their asset mix for some time. However, they indicated they were comfortable with this because it gave them firepower when the next cycle presents.”

Mr Murchie said high-net-worth investors tend to be at “the forefront of market cycles” and typically pick the high and low points of each cycle “quite accurately”.

He said these investors were “still motivated” to acquire strategic assets, but these assets would need to meet “very strict criteria” before an investment is made.

“These investors do not feel a need nor do they have a requirement to be fully invested at all times. As such, they remain patient and use investment fundamentals as their guiding light for investment decisions.”

Is commercial property reaching the end of its cycle?
Forza Capital, Adam Murchie, high net worth, HNW, commercial property, property cycle, investing, investment management, wealth management,
nestegg logo
subscribe to our newsletter sign up
FROM THE WEB
Recommended by Spike Native Network
Graham Smith - This is the subject of my Doctoral Thesis........
Rethinkr - It's also disgraceful that - for those who continue to work - additional voluntary contributions to superannuation are apparently prohibited. This is.......
Marina - Despite never having a break from my career since university and, despite upgrading my skills, I was unable to get any job after trying for more than.......
just wondering - Fintech advisers mostly appear to invest in a bundle of ETF's. You don't mention about the additional potential risks of ETF investments over direct.......