Globe St reports: According to a recently released Investment Property Databank (IPD) annual index, the investment vehicle of US commercial real estate returned 14.2% in 2010. This was the third largest return for that asset class in the past decade, driven by the trumpeting return of capital markets over the course of last year. Speaking on his firm’s index, IPD Managing Director Simon Fairchild recently stated that mid-teen returns on commercial real estate may be a feature of the market in the next several years. Remarking on the recent return of capital that is fueling these yields, Real Capital Analytics Founder and President Robert M White Jr stated that rising capital is occurring in “…pockets of strength…” for the office sector and more uniformly for multifamily investors. Mr White also drove home the importance of listed and non-listed REITs over the past year, and remarked he thought they would be chasing yields into secondary markets in 2011. For more responses to this yearly IPD index, please see the full article on GlobeSt.com.
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