Goldman Sachs buy side betting U.S. commercial real estate near bottom

We think we're going to bump along the bottom for a while, as a lot of these over-levered situations get worked through.

According to Reuters, Goldman Sachs Asset Management (GSAM) head of real estate Jim Garman says his team will resume “actively investing” in U.S. commercial property in 2024.

They believe the market will “bump along the bottom for a while.”

Goldman is mostly known as a sell side firm, but their GSAM unit is on the buy side of Wall Street. And when money managers like GSAM say they see a market bottoming, it means they’re looking for deals.

The Reuters piece reports on how other major investors don’t like U.S. commercial property yet.

But property is a very inefficient market, which means there are great deals out there but you have to look one by one.

Teams like GSAM have the resources to find the good deals, so this is an encouraging signal for a sector that’s had a rough time.

___
Reference:

– Goldman Sachs to resume bets on US property, other investors warn of more pain