‘Tourists’ may leave real estate as rates rise, Sternlicht says

US commercial real estate investors may turn to other opportunities as vacancies remain high and interest rates rise, according to Barry Sternlicht, chief executive officer of Starwood Capital Group LLC. “There are a lot of tourists in property and REITs right now,” Sternlicht said at a panel discussion yesterday at the Milken Institute Global Conference in Beverly Hills, California. “Everybody is racing for yield.” If interest rates head higher, “you will see a pause that will take a lot of capital out,” he said. Corporate bonds may benefit, according to Sternlicht.

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3d rendering of a row of luxury townhouses along a street

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