over the last 15 years commercial real estate sector has undergone a massive capital structure transformation equitization moving from private debt to both public and market equity as primary source of growth initially pricing this out favor largely misunderstood asset class required enormous discounts relative risk in fact not until reits were added s&p 500 2001 did global seriously begin understand how price end result been greater connectivity broader markets well increased efficiency good news is that an finally correctly priced bad for some making money will increasingly depend on adding value opposed exploiting favorable depreciation schedules tax loopholes or positive leverage history cap rates throughout era ownership substantially under 1990 through 2002 cash flow rate income return ignoring any expected appreciation exceeded total stocks clearly contrary intuition given
