Commercial real estate investors are seeking out "less risky types of investments" due to the market volatility, one expert has noted. In an interview with Bloomberg, head of Americas research at CB Richard Ellis (CBRE) Asieh Mansour explained that "core properties in primary markets" are the most popular assets because investors are becoming "more risk averse" in the uncertain economic climate.
Washington and San Francisco are among the US cities that could see demand from investors rise, analyst at Sandler O'Neill and Partners LP in New York Alexander Goldfarb told the news provider. He added that buildings boasting "long-term tenants with good credit" are the most targeted real estate assets.
Last week, CBRE published a report looking at the effect that the downgrading of the US credit rating will have on the country's economy. The firm predicted that the commercial property sector will not be hit as hard as the stock market because it is considered to be a "preferred asset class" that fits in well with a diverse portfolio.
- Tuesday 16 August 2011