Blackstone: Current ‘Fog of War’ Is Time to Buy

According to CoStar, Nadeem Meghji, Blackstone’s global head of real estate, highlighted the firm’s strategy of buying commercial real estate despite market pessimism.

Zooming Out

Meghji, whose firm oversees $325B in real estate assets, explained that uncertainty, or the “fog of war,” is when the best investment opportunities arise.

“In the fog of war, when sentiment is still negative and it is not obvious things have turned, is when you want to be deploying capital,” Meghji said. 

He added that Blackstone (BX) isn’t waiting for a clear signal before making moves.

Geographic Focus

Blackstone has been particularly active in Western Europe, where higher capitalization rates and lower borrowing costs provide attractive opportunities compared to the US. 

Despite a slowing European economy, Meghji emphasized that negative sentiment creates favorable conditions for acquisitions. Logistics and hospitality properties in Southern Europe are a primary focus.

India is another critical target for the firm. Meghji noted the country’s booming economy and untapped potential in logistics and data infrastructure.

Despite its 1.4B population, India has less Class A warehouse space than Detroit and lags behind Phoenix in data center capacity.

Recovery Insights

Blackstone has observed three consecutive quarters of real estate value increases, signaling stabilization in the global market. 

While it’s not a rapid recovery, Meghji sees encouraging signs in sectors like logistics and multifamily housing. Office properties remain challenging, but Blackstone’s limited exposure—less than 2% of its portfolio—positions it well to weather ongoing difficulties in that sector.

Meghji also pointed to an increase in bidders at auctions, reflecting improving liquidity and sharp reductions in borrowing costs that are driving market activity.

Reflecting on his Canadian roots, Meghji praised the country’s political stability, population growth, and world-class cities and universities. 

Blackstone’s Canadian investments include Pure Industrial, a subsidiary with a 40 MSF warehouse portfolio, and multifamily development opportunities through Toronto-based Tricon Residential.

Personal Reflections

Meghji shared his journey from a startup real estate company in Houston to leading Blackstone’s global real estate division. A former Vancouver resident, Meghji credited his immigrant parents’ sacrifices and entrepreneurial spirit for shaping his success.

“Like a lot of Canadians, I grew up with immigrant parents… They created opportunities for me with their sacrifice,” Meghji said, recounting how his mother transitioned from selling cosmetics to residential real estate.

With a track record of navigating volatility, Meghji remains committed to deploying capital during uncertainty, leveraging Blackstone’s scale and expertise to seize opportunities others may overlook.