Are CRE Markets Growing 'Too Much, Too Soon?'
National Real Estate Investor reports: While seemingly everyone is talking with optimism over the past year's growth in sales of, and rise in debt available to, commercial real estate, NREI Contributing Columnist Joe Caton recently offered some words of caution on the problems associated with markets that grow “too much, too soon.” Mr Caton listed some of the most recent deals and mergers, which have been a source of confidence to investors after several years of uncertainty, as evidence that the market for commercial real estate may be set to take off in the coming quarters, but at an irresponsible pace.
These include AMB Property Corp’s merger with Prologis, Blackstone’s recent megadeals, and even the return of multi-loan CMBS issuances. Mr Caton stated, “For its part, the commercial mortgage-backed securities (CMBS) marketplace also is attracting investors as optimism grow.” He relied on a forecast issued by Real Capital Analytics to predict that, “…global CMBS issuance in 2011 likely will reach the $40 billion level.” As debt becomes easier to obtain, investor competition will only grow more heated.
View the full article on National Real Estate Investor: Are CRE Markets Growing 'Too Much, Too Soon?'
Articles related to this topic:
The Return of CMBS – A CRE Bond Market Revival
Centro to Sell US Portfolio to Blackstone for $9.4 Billion
Flurry of Early M & A Deals Points to Formidable Year for CRE
UDR Unseats LaSalle for Largest Manhattan Multifamily Trade in 2011
RCA's Robert White Speaks on Where Core Assets Fit in CRE Marketplace
Megadeals Early to the Recovery Party This Cycle
A Tempered View of CRE as Recovery Gains Traction
Build It, Put Food in It, and They Will Come
Record-Setting Price Lands Spanish Retailer a Fifth Avenue Flagship
Wealthy Individuals Using Under-Mattress Cash to Invest in Commercial Property
Sovereign Wealth to Return to Commercial Property (Video)
Dr Chandan's Lead Indicator: "Why the Rosier Employment Report Still Falls Short"
Currency Conversions Boost Holding Period's Return in Shanghai
Posted by: Nina Turner