Maybe old dogs can indeed learn new tricks. A report released today by Deloitte L.L.P. suggests that the commercial real estate industry has learned from past booms, and that the lack of overbuilding compared with previous cycles is a factor in keeping commercial properties attractive as an asset class. The Deloitte report, 2008 Real Estate Capital Markets Industry Outlook: Top Ten Issues, notes that although commercial returns are cooling and will probably be noticeably lower this year than last, \u201cwhen compared to other investment categories (stocks, bonds, etc.), commercial real estate remains an attractive investment vehicle due to its stability and opportunity for diversification..\u201d Characterizing the current situation as \u201ccrunch, not crisis,\u201d the report notes that \u201cthe impact on commercial real estate has been limited when compared with other investment vehicles, such as commercial paper.\u201d Though highly leveraged deals are pretty much off the table, the report says, and low spreads are gone, capital is still available for deals with sound fundamentals. \u201cThe investors who face the greatest challenges in this environment,\u201d the report says, \u201care likely to be those that made a recent purchase that was highly leveraged and at a low cap rate.\u201dDennis Yeskey, Deloitte\u2019s national director\/real estate capital markets and one of the report\u2019s authors, told CPN that a variety of niche opportunities are already attracting capital, one of them being land banking, typically with homebuilders selling land to opportunity funds. \u00a0\u201cEverybody seems to have started a distressed-debt fund,\u201d Yeskey (pictured) continued. \u201cMezzanine funds are very hot.\u201dOn the global front, he commented that, even though overseas commercial property is still relatively new for many investors, global or specific-country funds are growing. \u201cRussia suddenly popped up on everyone\u2019s radar screens,\u201d Yeskey noted. \u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
Maybe old dogs can indeed learn new tricks. A report released today by Deloitte L.L.P. suggests that the commercial real estate industry has learned from past booms, and that the lack of overbuilding compared with previous cycles is a factor in keeping commercial properties attractive as an asset class. The Deloitte report, 2008 Real Estate…<\/p>\n","protected":false},"author":1314,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[37301],"tags":[],"class_list":["post-1003699844","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"yoast_head":"\n