US Investors 'Plan To Boost Property Portfolios'

The 2011 Colliers International Global Investor Sentiment Survey has found that more than 80 per cent of US real estate investors are intending to increase the size of their property portfolios over the coming six months....

The 2011 Colliers International Global Investor Sentiment Survey has found that more than 80 per cent of US real estate investors are intending to increase the size of their property portfolios over the coming six months. According to the research, many will focus their attentions on prime domestic markets, such as those in California, Texas, Washington, Boston and New York/New Jersey, with industrial and multi-family assets the main targets, followed by office and retail properties.

However, the firm noted that many investors are having to take greater risks with their money than six months previously. Warren Dahlstrom, president of the US Investment Services Group at Colliers International, commented: "This most likely reflects the dearth of low-risk, fully-leased prime real estate currently on the market and investors being forced into secondary markets and accepting a degree of vacancy."

Last month, a letter from top officials at the Federal Reserve Bank of San Francisco claimed that commercial property markets in the US have begun to recover, with evidence of this to be found in capitalisation (cap) rates across the country. The experts argued that movement in cap rates indicates that many urban areas are likely to see a rebound in prices over the coming months.
 

- Thursday 06 October 2011

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