Ryan Crowley on commercial real estate
From CRE Edge: Wealth generation through investments in CRE | Our CEO in conversation with Moneycontrol · · Property Share
“Commercial real estate is a hybrid instrument between a debt instrument and an equity instrument so you get 8-9% rental yields which you know because the tenant is in place you know how much rent he's paying and on top of that there is this capital appreciation so you could also get growth on your underlying real estate which is typically 5 to 10% a year so basically you end up making 13 to 18% unleveraged IRRs in commercial real estate as long as supply and demand stay in check.”
On , Ryan Crowley, Executive Vice President & Chief Investment Officer at HEALTHCARE REALTY TRUST INC, spoke about commercial real estate during CRE Edge: Wealth generation through investments in CRE | Our CEO in conversation with Moneycontrol on Property Share.
About Ryan Crowley
Ryan Crowley, Executive Vice President and Chief Investment Officer at Healthcare Realty, appeared on the Moneycontrol show "CRE Edge" on September 17, 2024. During the conversation, he stated that the world has already entered a recession, noting that the definition of recession has been satisfied in most of the Western world. He expressed concern about layoffs at major financial institutions like Morgan Stanley and Goldman Sachs in India, saying that if those institutions slow down, demand for commercial real estate in the country would certainly slow down. Crowley described commercial real estate as a hybrid instrument between debt and equity, stating that investors can achieve 8-9% rental yields plus 5-10% annual capital appreciation, resulting in 13-18% unleveraged IRRs. He noted that every lease in India is indexed to inflation. He discussed his previous lobbying work to get REIT regulations in place in India, and praised SEBI as a regulator, saying they have been conservative and introduced the right regulations at the right time. He also mentioned that his company uses an artificial intelligence tool that learns from millions of data points to predict investment outcomes in specific locations.