We keep hearing the refrain that there’s billions of dollars sitting on the sidelines for commercial real estate. Well if that’s true, then why is it so hard to raise capital in the current environment? Every investor and every developer I speak with is saying that investors are sitting on their wallets.

There is a substantial amount of dry powder available for commercial real estate investment across various firms, with London-based investment data company Preqin putting the number at more than $350 billion. Much of it is held by the largest private equity and alternative investment firms, including Blackstone, Brookfield Asset Management, Ares Management, KKR, Carlyle Group, Apollo Global Management, TPG Capital and Starwood Capital Group.

Much of the dry powder was raised three or more years ago and has been left unspent. Funds often have set periods during which they must spend money they've taken in from investors, and that deadline is approaching with many companies showing new signs of activity.

-------------

**Real Estate Espresso Podcast:**
Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)
iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)
Website: [www.victorjm.com](http://www.victorjm.com)
LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)
YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)
Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)
Email: [podcast@victorjm.com](mailto:podcast@victorjm.com)
**Y Street Capital:**
Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)
Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)
Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)

If you’ve been listening to this show for a while you will know that I’m a proponent of the law of supply and demand. To me, the law of supply and demand is a little like gravity. If you choose to try and fool gravity, you’re probably going to end up on the losing end of that bargain. It’s the same with supply and demand.

On today’s show we are looking at three forms of downward pressure being exerted in the student housing arena. I’m going to make the simplifying assumption that over the next year or two, the amount of supply of student housing is not going to change dramatically. The real issue is on the demand side.

This is a segment that quite frankly has been under pressure from simple demographics. Birth rates are down and the number of students enrolling is down.

There are a number of new borrowing limits that affect government sponsored student loans in the latest tax legislation that was signed on July 4.

During times of falling domestic demand for a university education, many schools try to make up the shortfall with foreign students. But here too we are seeing falling numbers of international students coming to the US for university.

This is another headwind for student housing. Layer on top of these headwinds the fact that some student housing providers had financed their properties at much lower interest rates than today’s market rates. These properties will face substantially higher debt service costs when it comes time to refinance their existing debt.

-------------

**Real Estate Espresso Podcast:**
Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)
iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)
Website: [www.victorjm.com](http://www.victorjm.com)
LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)
YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)
Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)
Email: [podcast@victorjm.com](mailto:podcast@victorjm.com)
**Y Street Capital:**
Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)
Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)
Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)

On today’s show we are talking about access to US Federal low income housing tax credits. This is something that frankly has not made headlines.

The Low-Income Housing Tax Credit (LIHTC) program is the primary federal program for encouraging the development and preservation of affordable rental housing in the United States. Here's how bonding capacity links to LIHTC and how recent legislation has changed the requirements.

The Act permanently reduces the threshold for private activity bond financing from 50% to 25% of the aggregate basis of the building and land costs. They effectively doubled the impact of bonding capacity and therefore they doubled the low income housing tax credits that are possible for the same amount of bonding.

-----------

**Real Estate Espresso Podcast:**
Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)
iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)
Website: [www.victorjm.com](http://www.victorjm.com)
LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)
YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)
Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)
Email: [podcast@victorjm.com](mailto:podcast@victorjm.com)
**Y Street Capital:**
Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)
Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)
Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)

Ross Slutsky is a commercial appraiser based in Orlando Florida. On today's show we are talking about valuation methods that can result in significant tax savings, particularly if there are future events that can make the realization of that value contingent on those events.

You can learn more by visiting pcecompanies.com or emailing Ross directly at rslutsky@pcecompanies.com.

--------------

**Real Estate Espresso Podcast:**
Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)
iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)
Website: [www.victorjm.com](http://www.victorjm.com)
LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)
YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)
Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)
Email: [podcast@victorjm.com](mailto:podcast@victorjm.com)
**Y Street Capital:**
Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)
Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)
Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)

Cheri Kuhn is an implementor with EOS Worldwide and is based in Seattle Washington. EOS is the Entrepreneurial Operating System that is currently used by thousands of small businesses across North America. It's based on the work of Gino Wickman who wrote "Traction" and "Rocket Fuel" and numerous other books on how to run a business successfully. On today's show we are talking about a few insights from working together. To connect with Cheri, visit https://www.eosworldwide.com/cheri-kuhn

or email her directly at cheri.kuhn@eosworldwide.com

--------------

**Real Estate Espresso Podcast:**
Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)
iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)
Website: [www.victorjm.com](http://www.victorjm.com)
LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)
YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)
Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)
Email: [podcast@victorjm.com](mailto:podcast@victorjm.com)
**Y Street Capital:**
Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)
Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)
Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)

On today’s show we are talking about a growing trend in the office market. This was reported last week in Urban Land Magazine.

It seems that U.S. Office Tenants Are Becoming Buyers. Deep discounts, favorable financing, and long-term benefits are turning users into owners.

-------------

**Real Estate Espresso Podcast:**
Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)
iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)
Website: [www.victorjm.com](http://www.victorjm.com)
LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)
YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)
Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)
Email: [podcast@victorjm.com](mailto:podcast@victorjm.com)
**Y Street Capital:**
Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)
Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)
Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)

Today’s show is another AMA episode (Ask Me Anything).

Marc asks, “We received a quote from a general contractor that is way above the expected averages for the actual square footage of the building. I’ve attached a copy of the quote and the drawings for the building. I’d love to get your thoughts on whether I need to readjust my expectations for what this project will cost to build.”

-----------

**Real Estate Espresso Podcast:**
Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)
iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)
Website: [www.victorjm.com](http://www.victorjm.com)
LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)
YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)
Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)
Email: [podcast@victorjm.com](mailto:podcast@victorjm.com)
**Y Street Capital:**
Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)
Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)
Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)

At Y Street Capital, we are specialists in storage and light industrial. If you are interested in getting exposure to a portfolio of storage projects including retail, industrial and boat & RV, our storage fund might be perfect for you. To learn more visit ystreetcapital.com

On today's show we are talking about how pension funds manage asset allocation and whether individual investors can learn anything from mirroring what the world’s most professional money managers do.

Pension funds are the bedrock of retirement security for millions worldwide. Their primary mission is to ensure that future liabilities the pension payments promised to retirees can be met. Achieving this delicate balance between growth and stability hinges critically on their asset allocation decisions.

So the obvious question for each of us as investors is, what is our ideal asset allocation? Do you think of it consciously?

-----------

**Real Estate Espresso Podcast:**
Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)
iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)
Website: [www.victorjm.com](http://www.victorjm.com)
LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)
YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)
Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)
Email: [podcast@victorjm.com](mailto:podcast@victorjm.com)
**Y Street Capital:**
Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)
Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)
Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)