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Monthly Archives: September 2012

Smart Money Buying Retail

Sales of retail commercial real estate properties ended the second quarter with sales volume that was 29 percent off compared to the second quarter of 2011. According to Dan Fasulo, managing director at global commercial real estate research firm Real Capital Analytics, last year’s figures were buoyed by Blackstone’s acquisition of Centro Properties.

“Retail is the property sector that has legs in this recovery,” Fasulo says. “At this point there is a nice, almost historic, pricing spread between apartments and office and everything else, including retail. It’s easy to see why savvy investors like Blackstone are making massive bets on retail and industrial sectors because they believe that spread is going to close over time. There is a lot of smart money buying retail right now.”

Smart Money Buying Retail

Sales of retail commercial real estate properties ended the second quarter with sales volume that was 29 percent off compared to the second quarter of 2011. According to Dan Fasulo, managing director at global commercial real estate research firm Real Capital Analytics, last year’s figures were buoyed by Blackstone’s acquisition of Centro Properties.

“Retail is the property sector that has legs in this recovery,” Fasulo says. “At this point there is a nice, almost historic, pricing spread between apartments and office and everything else, including retail. It’s easy to see why savvy investors like Blackstone are making massive bets on retail and industrial sectors because they believe that spread is going to close over time. There is a lot of smart money buying retail right now.”

Demand for European Real Estate

Cross-border investments into Europe have been growing. According to global commercial property research firm Real Capital Analytics (RCA), of the world’s €108.1 billion (£92.2 billion) of cross-border acquisitions over the past year, 52 per cent, worth €56.1 billion, was captured by Europe. “We are seeing an increased appetite for diversification among cross-border investors,” says Joseph Kelly, director of market analysis at RCA, who adds that even for prime properties, global buyers can expect yields on initial investments approaching 5 per cent, which compares well with returns on stocks and bonds.

Top European destinations for cross-border capital are Paris and London.

Demand for European Real Estate

Cross-border investments into Europe have been growing. According to global commercial property research firm Real Capital Analytics (RCA), of the world’s €108.1 billion (£92.2 billion) of cross-border acquisitions over the past year, 52 per cent, worth €56.1 billion, was captured by Europe. “We are seeing an increased appetite for diversification among cross-border investors,” says Joseph Kelly, director of market analysis at RCA, who adds that even for prime properties, global buyers can expect yields on initial investments approaching 5 per cent, which compares well with returns on stocks and bonds.

Top European destinations for cross-border capital are Paris and London.