Dry Powder Fuels Commercial Real Estate Deals During COVID by Kevin Sanz, CCIM, MSIRE

Posted on December 10, 2020

Trying to time the public equity markets and buy on the dips can be a losing proposition. Instead, investors chasing yield often turn to commercial real estate to generate a steady stream of passive rental income while maintaining its underlying value over the long-term. As evidenced by the Great Recession, even if a property’s value decreases in the short-term, rents under long-term leases tend to remain stable, having little to no impact on investors’ monthly cash flow.

In the current COVID environment, however, the key to commercial property buying opportunities depends a great deal on an investor’s dry power, or the amount of cash reserves and liquid assets on hand and available to deploy for the right deal that can achieve desired results. That is where real estate investments firms play a critical role, having raised hundreds of billions of dollars in dry powder during the past decade of economic expansion. By leveraging their deep pockets of investment funds with market expertise and long-standing relationships with property owners, developers and tenets, these real estate firms have the ability strike quickly deploying capital when prudent opportunistic acquisitions arise, including distressed sales at the right time and the right price point.

With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email info@orionmiami.com.