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

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