Real Estate
Fears of Ravaged Commercial Real Estate Market Have Eased, DoubleLine Says
- Portfolio manager says it’s time to ‘sharpen your pencil’
- Investors should ‘roll up their sleeves’ to find opportunities
An office building in the Financial District of San Francisco, California.
Photographer: Loren Elliott/BloombergThis article is for subscribers only.
Recovering risk appetite and tightening spreads in the commercial real estate market mean active managers have to work a little harder, according to DoubleLine Capital LP.
The most “draconian” scenarios have been priced out of commercial mortgage-backed securities following the sudden unraveling of Silicon Valley Bank last March, according to DoubleLine portfolio manager Morris Chen. Just over a year later, capital markets are open and even borrowers in still-unpopular industries — such as the office space — have access to credit.