New Horizons and Familiar Landscapes: New Capital Sources Confront Shifting Real Estate Fundamentals

Abstract

Real estate has continued to evolve as an asset class. In this introduction to the special issue, the authors examine new sources of capital that have entered real estate, some of which have already had a large impact and others that have the potential to bring major changes in the future. While the capital market foundations of the asset class are changing, the traditional cycle in property fundamentals remains a distinguishing feature, albeit changed from past cycles. As new sources of capital encounter real estate’s fundamentals cycle, in-depth understanding of the asset class is imperative. The authors review these trends and suggest how the other articles in this special issue can help investors navigate this confluence of new and old.