A Market in Transition, Not in Trouble
As some institutional investors scale back their real estate exposure for the first time in over a decade, Albert Dweck of Duke Properties remains optimistic about what he calls a “natural rebalancing” in the property investment landscape.
“Markets evolve — and in real estate, patience always pays off,” Dweck says. “We’ve seen cycles before, and what often looks like retreat from one group creates opportunity for another. The fundamentals of property ownership — location, quality, and community — are as strong as ever.”
A recent survey showed that large institutional funds are trimming their allocations to real estate as higher interest rates and cautious lending weigh on short-term performance. However, Dweck believes that such moments separate long-term visionaries from short-term traders. “Institutional investors move based on quarterly reports. We invest for decades,” he explains.
Seeing Strength Where Others See Slowdown
While market headlines may focus on reduced fund allocations and slowed deal activity, Duke Properties sees an entirely different story unfolding beneath the surface.
“This is a reset — not a collapse,” Dweck emphasizes. “Values are stabilizing, and that gives disciplined investors the ability to enter strong markets at more realistic price points. For those with liquidity and foresight, the current environment is one of the best in years to identify underappreciated assets.”
Indeed, as some funds sell property stakes at discounts, private real estate firms like Duke Properties are positioned to benefit from better pricing, stronger yields, and less crowded competition. Dweck notes that in times of transition, New York City real estate — with its enduring demand and limited supply — has historically shown resilience unmatched by most other markets.
Staying Focused on Long-Term Value
For Dweck, short-term market corrections are a reminder of why Duke Properties has always centered its investment strategy around fundamentals rather than speculation. “We don’t chase trends — we build stability,” he says. “Even when asset managers rebalance or divest, the core need for housing, retail, and quality office space doesn’t disappear. It simply changes hands.”
Duke Properties continues to focus on value-driven acquisitions and property improvements, especially in prime and emerging urban locations. “Every property tells a story,” Dweck explains. “Our role is to bring out its best version — through smart management, modern upgrades, and community engagement.”
This approach, he adds, not only generates consistent returns but also strengthens neighborhoods — a principle Duke Properties has upheld for years.
Cautious Optimism in a High-Rate Environment
The ongoing “higher-for-longer” interest rate climate has posed challenges across all real estate sectors, from multifamily to commercial. Yet Dweck views it as an opportunity to demonstrate resilience and financial discipline.
Dweck believes that the current cycle will reward investors who understand their markets deeply and manage leverage prudently. “We’ve always believed in being conservative with debt,” he adds. “That approach gives us the flexibility to hold strong through tightening cycles and capitalize when others are forced to exit.”
Market Rebalancing: The Opportunity in Realignment
As large institutions reallocate capital into other asset classes like data centers and infrastructure, Duke Properties sees the retraction as a temporary phase — and a chance for private operators to lead the next wave of real estate innovation.
“When major funds rebalance, they often leave behind high-quality assets that still have long-term potential,” says Dweck. “That’s where firms like ours can step in — bringing an ownership mindset, hands-on management, and the ability to add real value rather than simply hold capital.”
The decline in institutional enthusiasm, Dweck argues, creates a healthier, more balanced market, one where returns are driven by operational excellence rather than speculation. “It’s back to fundamentals — and that’s where Duke Properties thrives.”
Looking Forward with Confidence
Despite slower sales and rising financing costs, Dweck remains confident in the trajectory of urban real estate, particularly in markets like New York City where land and quality space remain scarce.
“The best investors don’t react to headlines — they read between them,” he says. “Right now, we’re seeing a moment of recalibration that will set the stage for the next phase of growth.”
Duke Properties continues to position itself for that next phase through disciplined acquisitions, modernization of existing assets, and partnerships that align with the company’s long-term vision.
“Cycles come and go,” Dweck concludes. “But the core truth never changes — real estate remains one of the most powerful ways to build stability, create value, and shape the future of our cities. This market isn’t a setback — it’s a setup for what comes next.”