CRE Investment Comes Back Big

 

Ian Ritter is Online Content Manager at GRS Group

Ian Ritter is Online Content Manager at GRS Group

Akerman LLP put out a survey saying that investor confidence in U.S. commercial real estate has reached “new heights,” reported GlobeSt.com. This in huge contrast with the bad news coming out of the CRE investment community during the recession.

In this space, we have to deal with specific sectors that are doing well in the CRE investment arena. For example, we have touched on medical office buildings and industrial real estate.

Akerman surveyed about 200 C-suite commercial real estate execs. Not only did the report find that more capital will be available for investments this year, but 70 percent of respondents reported that they have more optimism for the market in 2014 as well, GlobeSt.com reported. There will be an increase in private equity, REIT and funding by the banking industry. CMBS financing will also see a boost.

This Barron’s column also makes the case for commercial real estate investment, specifically REITs. The author, Gregg Fisher, with investment firm Gerstein Fisher, writes: “I see a compelling long-term case for an allocation to REITs in a well-diversified portfolio.”

Meanwhile, a Forbes article, citing a Knight Frank report, says that investors in real estate are more willing to make riskier bets in tertiary and secondary markets. This appetite for risk began last year and is expected to continue into 2014.

Finally, a report by Bank of America subsidiary U.S. Trust, is bullish on commercial real estate. The report says: “Multi-family and industrial properties have enjoyed stronger demand relative to the other product types, which has translated into new supply, a situation that could result in moderating growth in certain markets. The office and retail recoveries have been markedly slower, but show signs of modest near-term improvement.”

How do you feel about commercial real estate investment this year? Do you agree with the several sources that expect a 2014 uptick?

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