We are pleased to share with you the following article that was written by Keith Jurow, creator and author, Capital Preservation Real Estate Report. We’ve been very impressed with Keith’s many articles / reports, and we thought that you’d appreciate receiving his perspective, too.
“Fueled by institutional money and hot funds escaping from China, the US office market roared back – until the end of 2015. Now the hottest markets are showing signs of tanking and the smart money is getting out”, according to Jurow.
If Keith is correct in his assessment of the commercial real estate market, it further exacerbates a growing problem for plan sponsors and their asset consultants, who are struggling to find assets without significant over-valuations. Given the current, and nearly impossible, challenge of cobbling together an asset allocation in pursuit of the ROA, we suggest that plan sponsors try a different approach.
Reach out to us if you ‘d like to hear how KCS can reduce your plan’s contribution volatility, while stabilizing the funded ratio. Also, don’t hesitate to reach out to Keith with any of your real estate questions. He’s an incredible resource.