RCA's Robert White Speaks on Where Core Assets Fit in CRE Marketplace
REALTOR Magazine reports: Recently interviewed by Mariwyn Evans, editor of the National Association of Realtors’ REALTOR Magazine, Real Capital Analytics (RCA) President and Founder Robert White addressed the continuing trend of investors' voracious appetite for core commercial real estate assets. With pricing increasing rapidly and cap rates approaching 2007-lows for these prime assets, particularly in the nation’s leading markets, market hawks have begun to wonder if a bubble is beginning to emerge as too much capital chases too few assets.
Leveraging RCA data aggregation and analysis, Mr White spoke to the drivers of this trend over the past year, and what can be expected as 2011 unfolds. Over the past several quarters, capital has been looking for yields, “and real estate is offering pretty attractive returns compared with money market funds or the stock market…There’s definitely a concentration of capital looking for core office.” Now two months into 2011, however, Mr White stated that RCA is already seeing “…the gap in the market in core pricing between first- and second-tier cities is already beginning to close…The loosening of the credit crunch and the revival of the CMBS market should also support investment in smaller cities.”
For more on Mr White’s thoughts regarding the role core assets are playing in commercial real estate markets, please see his full interview on REALTOR Magazine’s site.
(March 2011 REALTOR® Magazine article written by Mariwyn Evans, commercial real estate editor.)
View the full article on REALTOR Magazine: RCA's Robert White Speaks on Where Core Assets Fit in CRE Marketplace
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Posted by: Nina Turner