The real estate market has been a near surefire investment in recent years, but it looks like that's about to change.

I think we're going to see supply demand fundamentals within markets and within sectors really be much more nuanced.

And so from an investor standpoint,

as we think about cycles, it's going to be about capturing those opportunities.

I'm Allison Nathan, and this is exchanges at Goldman Sachs.

To help explain the opportunities and challenges facing real estate.

To help explain the opportunities and challenges facing real estate investors in the current economic environment,

I'm sitting down with Jeff Fine, Globalhead of Real Estate Clients Solutions and Product Strategy,

and Nora Creedenen an investor in our

private real estate business within Goldman Sachs asset management. Jeff

Nora welcome to the program. Good afternoon thank you for having us. Great to be here.

Jeff let's start by framing for our listeners where we are in the real estate cycle today.

We had an incredible expansion off the bottom of the financial crisis with very accommodative capital markets and a prolonged

period of very low rates but then we had the COVID crisis which we know upended

many real estate markets and now we're grappling with high inflation and higher interest rates.

So where are we in the traditional sense of the cycle at this point?

Look, I think it's important to go back as far as you did, Allison, in your intro, because a lot's happened over the last 10 to 12 years since the financial crisis, and we've seen major changes in the investment landscape in real estate.

It started with the recovery period

and a number of demographic changes that we saw.

People moving from historic gateway markets

into sunbelt markets and secondary cities that historically had not been

Magnets for Capital the way they had been. We saw a sector shift taking place

...