Investors Bullish about Commercial Real Estate
Investors are more bullish about commercial real estate than other investment classes, reported RERC in Commercial Real Estate Direct this week. "Institutional investors skittish about the slowing economy and the volatility and risk in the stock market are finding the diversification, stability and higher absolute returns of commercial real estate increasingly attractive," said Ken Riggs, president and CEO of RERC. click here to link to article
Apartment and Office Sectors Spark Investor Demand
RERC's investment conditions ratings for the institutional apartment and CBD office sectors jumped a full point during second quarter 2010, making them the two highest-rated property types that RERC surveys. The investment conditions rating for the apartment sector increased to 7.1, while the rating for the CBD office sector increased to...(click here for entire press release)
Summer 2010 RERC Real Estate Report Released
As the second half of 2010 gets underway, we are at an inflection point in this investment cycle and are facing the harsh realities of a risky world. Top-tier institutional real estate continues to be in great demand, despite the slowdown in the economy, and required returns are increasing slightly for some property types, while cap rates are mostly declining, as reflected in the summer 2010 issue of the RERC Real Estate Report, "Riding the Edge of Success." click here to purchase 2nd quarter report
Real Estate Recovery Dependent on Repricing and Deleveraging
Investors expecting to find bargains on distressed properties are finding instead that the amount of liquidity in the market and the ability of lenders to re-price assets to a level that will clear the market is more measured than most had predicted, explained RERC President and CEO Ken Riggs, in the Wall Street Journal's MarketWatch report. Riggs, who also serves as the CCIM Institute's chief real estate economist, stated that the process of refinancing debt serves as a guiding hand out of this severe and Draconian commercial real estate recession, and he doesn't see...click here to link to article
Kendall Kicks-off NCREIF Capital Markets Symposium
Del Kendall, managing director of RERC's Houston office, kicked-off the Capital Markets Symposium at the NCREIF Summer Meeting in Chicago on June 30. Held jointly with the Appraisal Institute, the session featured panel members Bob White, CEO of Real Capital Analytics (RCA), and Ken Riggs, CEO of RERC, who discussed the state of the commercial real estate market. Click here to access PowerPoint.
Continuing on the Path to Recovery
In an abbreviated edition of his semi-annual podcast to members of the CCIM Institute, RERC's Ken Riggs noted that while investors remain nervous about the volatility we are seeing in the stock and bond markets, much equity is still sitting on the sidelines "looking for a home." Commercial real estate—and the reduced amount of risk associated with this investment alternative—is looking decidedly more attractive. Even so, investors are taking the time to “get it right” during this prolonged recovery period…
2010 To Be Another Tough Year
RERC's Ken Riggs notes that while institutional real estate has been forced to mark to market and prices are close to bottoming out, the broader commercial real estate market still has a ways to go and it will take some time to "come clean." Listen to Riggs' view of what the industry and investors should expect in 2010 and beyond.
Dealing with a Distressed Market
As the process of repricing and an increasing number of distressed properties create more uncertainty for investors, commercial real estate is facing its greatest challenges since the 1990s. What should investors expect over the near term?
The Impact of Cap Rates on Values
From a pricing and value perspective, the institutional commercial equity real estate markets are facing headwinds that were never imagined a couple years ago. RERC's required cap rates have increased and now stand at 8.4 percent, which is very close to the level recorded in first quarter 2004. The question is, how much further--if at all--will they increase? (The complete article, "Valuation Navigates Steep Cliffs," is provided in the summer 2009 issue of the RERC Real Estate Report.)