Investment conditions improve in commercial real estate during Q3

Investment conditions improve in commercial real estate during Q3

Although numerous factors such as slow economic growth and fear of the fiscal cliff have held back investment activity in the commercial real estate market, conditions have been improving.

According to the CCIM Institute, investment condition ratings for all property types showed improvement in the third quarter. The apartment market received the highest rating, a 7.6 out of 10, followed by the hotel, industrial, retail and office sectors.

CCIM members believe that the best investment strategy includes buying low, and investing in foreclosed or distressed properties. They also recommended looking to the long term and having patience when investing.

"Returns on investment income from commercial real estate can still be achieved over time for those with patience," said Kenneth Riggs Jr., chief real estate economist at the CCIM Institute. "There are plenty of investors seeking to avoid the volatility of the stock market, and who require higher yields than those offered by bonds and cash investments."

The market as a whole is expected to see improvements in the near future, as panelists at the 25th Annual Economic Forecast Breakfast said it is recovering and looking up in 2013, according to the San Diego Union-Times.

With a recovering market, property management companies with interests in commercial real estate could see an improvement next year as well.

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