Steve Loffman, managing director at Raymond James, participated in a video interview during Nareit’s REITwise: 2024 Law, Accounting & Finance Conference held March 19-21 in Hollywood, Florida.
Loffman shared insights into the current state of the real estate capital markets and predicted future trends. Reflecting on the market's health, Loffman pointed to an improvement from previous years while noting persistent challenges. He emphasized the disparity between equity and debt perspectives, highlighting robustness in the debt market with more than $11 billion in issuance since November.
Loffman anticipates a positive impact on equity issuances following potential rate cuts by the Federal Reserve and expects increased M&A activity and IPOs in the near future. He explained that real estate typically performs better as rates decline, translating into improved equity pricing and share values.
Regarding the private real estate markets, Loffman expressed confidence in the recognition of new values prompted by interest rate changes. He observed a convergence between public and private market repricing, foreseeing increased transaction activity as real estate values align more closely.