Property investors to spend more amid declining values
Following two years of declining commercial property values, investors are preparing to spend more, Bloomberg reported.
Since December, fund and investment companies have increased the capital available for deals in the Americas by 54 percent to $97 billion, according to DTZ Group plc, a London-based brokerage.
Most of that cash will be used to close deals in the United States.
According to Real Capital Analytics Inc., the third quarter saw the most U.S. sales activity in two years, and the research firm expects the nation’s share of global property transactions to double from last year’s 11.6 percent.
“The U.S. is seen as the most attractive market globally,” said Nigel Almond, DTZ’s associate director of forecasting and strategy research.
During the second quarter, U.S. real estate investments generated a return of 3.3 percent from rental income and the first gains in property values in two years. That’s according to the Chicago-based National Council of Real Estate Investment Fiduciaries in Chicago.
And through secondary shares sales last year, U.S. real estate investment trusts raised $21.2 billion to pay dividends and reduce debt.
In the first three quarters of 2010, companies such as BioMed Realty Trust Inc. and Duke Realty Corp. tapped the equity markets to raise about $12 billion for acquisitions.
In the Asia-Pacific region, about $71 billion is available for real estate investments, a 29 percent increase from December. In Europe, $112 billion in capital is available for transactions.
In his report, Almond said the rising amount of money earmarked for real estate reflects how companies “have taken advantage of the access to capital markets to place them in a better position to target new opportunities.”
Weekly CRE show launches in Atlanta
A weekly radio program centered on commercial real estate and intended for a national audience has launched in Atlanta, the Kansas City Star reported.
“The Commercial Real Estate Show,” which features host Michael Bull, a Certified Commercial Investment Member with more than $2.5 billion worth of sales and leasing experience, will air each Saturday from 9 to 10 a.m.
Bull, president of Atlanta-based Bull Realty Inc., a 32-member commercial brokerage that sells commercial properties and land for 74 banks and loan servicers, said the show’s tagline is “lead, learn and laugh.”
He kicks off his broadcasts with real estate news and market updates, followed by talks with industry leaders who discuss predetermined topics.
“Each show will include current commercial real estate industry news, advice, market information and best practices, all from leading industry experts,” he said. “We help listeners learn market knowledge and best practices to lead their company’s success.”
On Oct. 16, Dan Fasulo of Real Capital Analytics Inc. will present an update on nationwide retail investment sales, including projections.
Also on that show, national retail tenants will share site-selection strategies, and partners from two prominent retail real estate law firms will discuss best practices for landlords and tenants of retail properties.