Deals
Blackstone's Gray Sees Lower Real Estate Returns as CMBS Falters
- CMBS market hurt by global volatility, new rules, he says
- Gray still bullish on U.S. housing rent and price gains
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Returns from U.S. commercial real estate are likely to moderate amid capital-market volatility and muted economic growth, said Jon Gray, global head of real estate at Blackstone Group LP.
“Rates of return are definitely coming down” in the U.S., Gray said Friday at a meeting at the University of Texas Investment Management Co. in Austin. While it’s too early to call the end of the recovery, the property cycle is “much more mature” and investment yields, as measured by capitalization rates, are “very low,” he said.