Sunday, December 19, 2010
Commercial real estate outlook
Commercial recovery on the way
1. Economic Expansion - US adding 1.2 m private sector jobs
2. There's no firesale for quality assets
3. Low interest rates. Historically high 480bps spread. This is the difference between property cap rate (currently 8% US avg) to the 10 year Treasury which is the benchmark for property returns. Strong signal to buy.
4. Apartments are a safe bet, followed by retail but higher risk. And hotels will definitely pick up!
Visit our website Castle Avenue Partners - Manhattan investment property