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Stock Picking in Commercial Real Estate: Scott Rechler Places His Bets

February 27, 2025

Thursday, February 27, 2025

On Tap Today

  • Chasing alpha: RXR Realty CEO Scott Rechler shares where the smartest real estate bets are today and what AI could mean for the future of the market.

  • Mixed-use webinar: Join JLL and Kastle experts to explore data-driven strategies for boosting profits and tenant synergy. Sign up.

Editor’s Pick

As the commercial real estate market faces uncertainty—shaped by rising interest rates, evolving tenant demands, and a wave of maturing debt—investors must rethink their strategies. The era of broad, one-size-fits-all approaches is fading, making a more selective, strategic mindset essential for success. Much like navigating a volatile stock market, choosing the right assets has never been more critical. With market conditions shifting rapidly, one pressing question remains: where should investors place their bets to stay ahead?

RXR and TF CornerStone plan to build 175 Park Avenue, a 1,575-foot skyscraper that would be the tallest in the U.S. If they can secure the $6.5 billion in financing. (Image: RXR)

Scott Rechler, CEO of RXR Realty, offers valuable insights into where savvy investors should focus. In a recent conversation with Willy Walker on the Walker Webcast, Rechler emphasized that multifamily housing remains the strongest option for risk-adjusted returns in today’s market. While real estate faces short-term challenges—particularly in supply and debt—he sees rental housing demand continuing to rise, worsening the already critical housing shortage. His outlook serves as a reminder that, despite economic headwinds, multifamily investments hold strong long-term potential.

Not all sectors of commercial real estate are as clear-cut. The office market, in particular, has been shaken by remote work and shifting tenant needs, causing many investors to dismiss it entirely. But, Rechler sees opportunity in select office assets—especially those that can be repositioned or converted for higher-value uses. While AI may be the next major disruptor for office demand, Rechler remains cautiously optimistic about the future of offices that can adapt to market trends.

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