Friday, March 18, 2011

Which Investors Will Dominate in 2011?

Globe Street news has an interesting poll that asked we CRE practioners about the business climate through the remainder of this year, and which investors we think will dominate the market in 2011.

Here are the results:

50% REITs

13% Foreign Capital

12% Institutional Types

25% Private, High Net-Worth Players

This is exactly the same way I ranked the answers. Right now, to the good, iternational investors are getting more comfortable with the economy here, and are seeing opportunity and seizing it when it makes sense. Institutional investors are still sitting on their hands to a great degree for a number of reasons, but there is some money movement.

Private, high net-worth investors are coming out the woodwork, capitalizing on opportunities left and right, and have been a solid alternative to traditional lenders who are still largely absent from the commercial/investment real estate market. Finally, real estate investment trusts (REITs) are uncorking a boatload of money that has been building up for the past 2-3 years, during which time many REITs withdrew from acquisitions and dispositions. Their pend up demand for new product, enormous sums of cash on hand, and product that with each passing week is becoming more and more of a bargain is prompting REITs to pull the trigger.

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