Peachtree Group

2025: A New Game for Commercial Real Estate In the new year, commercial real estate stakeholders will have to face the reality of a changed environment - not just the next inning of a familiar game but an entirely new one. The era of easy money from 2010 to 2022, driven by cheap capital, is over. The "higher for longer" interest rate environment is here to stay. The 10-year Treasury yield is now more than double the 2010-2022 average of 2.2%. At roughly 4.5%, I see room for it to climb. It was in 2022 that we witnessed the turning point, marking the shift from a decade of CRE overperformance to what will be a more challenging market. Is CRE still a great investment? Absolutely, but only for those who adapt and can pivot. A successful strategy now requires agility and precision. Broad market plays are no longer effective. With the stock market entering 2025 volatile, especially with upcoming policy shifts, private credit will offer stronger, risk-adjusted returns, and targeted investments will outperform blanket strategies. Most importantly, asset management will be a critical in-house function. The days of relying on low interest rates to hide poor decisions are gone. Only those with a clear path and deep expertise will thrive in this environment. Peachtree Group Peachtree Group Credit Jared Schlosser Brian Waldman Michael Ritz Jatin Desai Michael Harper Brent LeBlanc Daniel Siegel Brian Pascus Michael Gigliotti CBRE Warren de Haan #cre #distresseddebt #hotels #multifamily #2025 #powell #federalreserve #banks # https://lnkd.in/gspUhDqk

It's not everyday I get to speak with folks with billions under management. Peachtree Group is one of the premier #hotel investment firms in the U.S. Jatin Desai is a down to earth, wonderful man and Madison SPECS looks forward to a long-lasting relationship. Peachtree Group also has a financing arm, they are direct lenders for all asset classes and have done over 300 loans in the past few years alone. These folks don't play games! Greg Friedman #hospitality #costsegregation

Excited to share my annual volunteer experience at the Women’s Academy within Wellspring Living. The Women’s Academy offers life-changing programming to women who have experienced difficulty gaining living wage employment due to life circumstances such as poverty, oppression, trauma, and trafficking. The Women’s Academy offers four path ways - Adult Education (GED), Career Preparation, Career Intensive/Apprenticeship, and Wellness - designed to equip and empower women in Atlanta’s communities for success. What makes this experience even more meaningful is the opportunity to engage with the amazing women I collaborate with daily. #makeadifference #volunteer #womensupportingwomen #nonprofit #atlanta #community #leadership #philanthropy #peachtreegroup

WSJ: “The Next Big Fed Debate: Has the Era of Very Low Rates Ended?” I don’t believe there is a debate—the U.S. economy has shifted to a higher neutral-rate regime driven by structural factors. I have thought this was their approach since the Fed finally lowered rates earlier in the year. For commercial real estate, this means elevated borrowing costs and upward pressure on cap rates, requiring further recalibrated valuations and more disciplined underwriting. Investors must adapt to this new reality, focusing on high-quality assets with strong fundamentals. A higher neutral rate and rising productivity could drive investment in emerging submarkets and regions benefiting from infrastructure upgrades or demographic shifts, favoring properties aligned with new economic realities. Meanwhile, the office sector may face challenges from efficiency gains. A shift toward a higher neutral rate might pressure discretionary spending, affecting hotel occupancy and room rates. Conversely, if productivity gains foster wage growth, it could support resilient demand for travel and tourism. With the Fed potentially nearing the end of its rate-cutting cycle, CRE stakeholders must prepare for stable but higher rates. This environment demands strategic alignment with macro trends and a forward-looking approach to investment, ensuring resilience and adaptability in a structurally evolving market. Nick Timiraos Peachtree Group Peachtree Group Credit Eric Rosengren The Wall Street Journal #cre #federalreserve #jeromepowell #commercialrealestate #hotels #distresseddebt https://lnkd.in/gS5FJ-it