Marcus & Millichap’s Nadj: Commercial Real Estate Investment “Attracting Capital At A Record Pace”
Managing director of Marcus & Millichap, Hessam Nadj appeared on CNBC to discuss the commercial real estate sector’s investment yields. They’re currently beating bonds and appeared to have escaped the brunt of the economic crisis, an effect Nadj attributed to lenders holding on to assets and minimizing the downturn’s damage by modifying loans instead of holding fire sales.
For those retail and office building stakeholders in secondary markets who might look at this diagnosis askance as they encounter record vacancy and rent declines, Nadj prescribed optimism, expecting the buying trend to “broaden beyond the top markets” in 2011. Since sales volume in premier markets is on track for a 60% increase this year over last, that would certainly come as a welcome development across the heartland.