Commercial property investors in the US who have not witnessed the expected deluge of distressed real estate
enter the market are focussing their attention on quality assets. This is according to PriceWaterhouseCoopers' (PwC) Korpacz Real Estate Investors survey.
The report, which reviews 31 different US commercial real estate markets, found that investors' return on the investment over the amount paid declined in 26 markets over the past three months.
"Many investors were waiting to pounce on the anticipated overflow of underwater and distressed quality assets, but that scenario never quite materialised as expected," said Susan Smith, director of real estate advisory practice, at PwC. "With the skittish economic recovery, little rent growth and minimal leasing velocity, a flight to quality is evident among investors. Sellers offering quality commercial real estate for sale are garnering a lot of attention."
Elsewhere, the report found that recovery in commercial US real estate is being led by the apartment sector. The warehouse sector is also showing signs of recovery with a downward shift in vacancy in the second quarter of 2010.
- Monday 20 September 2010