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Market Cycles and Institutional Behavior Patterns

13 minPRO
4/6

Key Takeaways

  • Capital markets cycles: Recovery, Expansion, Hyper Supply, Recession; CMBS issuance tracks these phases.
  • Institutional herding drives capital in after prices rise and out after prices fall.
  • Allocation lags of 6-18 months delay institutional capital deployment past optimal entry points.
  • The denominator effect forces institutional RE sales during equity market downturns.
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Test Your Knowledge

1.What is the typical duration of a full real estate market cycle?

2.What is "herding" in institutional real estate behavior?

3.What is forced selling in institutional real estate?