**The Most Expensive Real Estate Isn't Always the Most Valuable** Many investors focus on what has performed well. Few stop to ask whether the fundamentals still justify the price. Some real estate sectors are trading as if yesterday's growth will continue forever: 🏢 Traditional Office (Secondary & Tertiary Markets) 🏘️ Luxury Multifamily (Oversupplied Markets) 🛍️ Discretionary Retail 🏨 Older Hotels in Secondary Markets 🏢 Class B & C Suburban Office Parks The common pattern is hard to ignore: • Demand growth has slowed or reversed • Supply has outpaced absorption in key markets • Capital costs remain elevated • Cash flow assumptions look increasingly optimistic • Future risks are not fully reflected in pricing The biggest risk in real estate isn't volatility. It's overpaying for an asset with weakening fundamentals. The best investors don't chase what was working. They focus on: • Durable demand drivers • Limited new supply • Strong pricing power • Conservative leverage ...