Jonathan D. Miller

For the short-term, a full-employment economy juiced by tax cuts will continue to buttress real estate markets just as rising interest rates have stalled cap rate compression. That means investors must rely more on cashflows or make riskier plays. Institutional core investments have reverted to the mean—returns will be income based without much if any appreciation for the next year or two at least. And that’s the upside. Yield hungry investors make ever deeper investment inroads into always dicey secondary markets—a tip off that the market cycle approaches an overripe stage.