As deep-pocketed private investors line up to take advantage of a depressed U.S. commercial real estate market, the eventual winners are likely going to be players with the capital — and the stomach — to jump in while prices are hitting bottom.
It is too early to talk of a recovery, or even stabilization in a market hit by the double whammy of recession and a dearth of funding, industry experts told the Reuters Real Estate Summit this week.
But CB Richard Ellis broker Darcy Stacom, nicknamed the Queen of the Skyscraper, identified two groups of potential winners in the current cycle. One includes commercial tenants who could lower their occupancy costs by buying a property, and who may enjoy lower rents as leases come due.
The other is investors who stayed on the sidelines during the market upswing and who now have the required capital. Stacom said she has hosted “innumerable groups” of investors from Asia, South America and Canada looking to buy distressed New York office and residential space, as well as hotels.
Read Nick Zieminski’s full article “Real Estate Investors Wanted: Must Have Strong Stomach” in The Guardian (June 23, 2009).