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Commercial Market Perking Up at the Top

By
Real Estate Agent with Berkshire Hathaway HomeServices Professional Realty 200039


Commercial property analysts are declaring that property investment is on the upswing after one of the longest down periods ever.

Of course, not every class of building owner has yet to reap the rewards of this apparent turnaround.

Real Capital Analytics reports that properties valued at $20.6 billion changed hands in this year's April-through-June period, an 86 percent jump from the same period a year earlier.

The bulk of the activity has been at the very high end of the market so far, researchers note. Investors are bidding up prices on trophy properties in several key markets, including New York City and the District of Columbia. At the same time, lenders are lining up to finance these assets.

Dan Fasulo, a managing director at Real Capital Analytics, comments, "Eventually the bidders who keep losing out on these competitions are going to readjust their expectations and will start to try other strategies, whether it's investing in a lower-quality property or going into a secondary market."

Source: Investor's Business Daily (08/06/10)