Live on Bloomberg TV

00:00Does it concern you at all that there is so much money being raised for commercial real estate strategies at this point in the economic cycle Good afternoon Lisa and thanks for having me on and congrats on the new show. No I would say to you that if you look at the fundamentals of commercial real estate right now the market is actually maintained a great amount of discipline through the current expansion. I think the big thing that is tempering some of the past cycle problems is that the great financial crisis really did take a significant chunk out of the values as well as made it so that lenders like ourselves really look back on the Great Financial Crisis and say we might have gotten over our skis a little bit. And so as a result of that there has been adequate liquidity but not too much liquidity in the markets and the buyers of assets have been very disciplined in the prices that they're paying. So we have seen valuations fall off in certain markets I'm thinking Paris Mel born in Chicago even some areas in New York and Los Angeles. How do you sort of view that in terms of where we are in the cycle well everyone keeps going back to where we are in the cycle but we've never obviously seen QE 3 before and so as you look at the inverted yield curve that we've had recently a lot of people said that's going to predict another recession. We've never had QE 3 before so it's a little hard to say that fiscal policy is going to follow the past. I would also say that many real estate investors as they sit there and say typical real estate cycles are sort of eight years those cycles have all been predicated by significant building coming out of the previous recession. And as you well know in this recovery we never had the sort of 3 and 4 percent GDP growth that would have put a lot of shovels in the ground and had an oversupply sort of in years five or six. And so as a result of that people are still buying . But what you don't have is oversupply. There are clearly pockets as you just mentioned. Some people are worried about New York City and the amount of supply and Hudson Yards. But those are just focused areas that have a little bit too much oversupply. But as a lender those aren't really that concerning to us given the amount of equity capital that is going into all of these deals. Well just real quick here I'm wondering where are you seeing the biggest opportunities there are opportunities everywhere. I would say that industrial has obviously been a very significant sector. Blackstone just took private a big read up in Canada that has logistics as well as industrial. They bought JLP previous. Previously this year which is also a very big industrial and logistics real estate play. But if you look across the board at publicly traded rates right now all of them are trading extremely well and it's not sector specific. And so whether it's multifamily whether it's industrial or office all of those rates are showing extremely good value today. And I think that's reflective of the overall commercial real estate market .

No schedule data available.

Finding Value in REITS: Walker & Dunlop's Walker

Walker & Dunlop, Inc. is one of the largest commercial real estate finance companies in the United States. Willy Walker, chairman and CEO of Walker & Dunlop, speaks with Bloomberg's Lisa Abramowicz on "Bloomberg's Money Undercover" about commercial real estate and finding value in the sector. (Source: Bloomberg)

More From Money Undercover
All episodes and clips