Report: Major cities focal point for commercial investment in 2012

Major U.S. metros including New York, Boston, San Francisco and Washington, D.C. are likely to remain the hot spots for international investors to purchase commercial real estate this year, according to a report.

Major U.S. metros including New York, Boston, San Francisco and Washington, D.C. are likely to remain the hot spots for international investors to purchase commercial real estate this year, according to new real estate data.

Real estate advisory firm Cresa states in its year-end report for 2011 that the biggest real estate markets in the nation should account for most of the commercial transactions forecast for 2012.

Additionally, the report noted development of new commercial properties should be low this year, meaning investors looking for more modern buildings will likely have limited options, as vacancy rates remained elevated nationwide.

"The economy we see today is the economy we're likely to see throughout 2012," said Cresa CEO Bill Goade. "While we can expect some expansion, there will continue to be a high degree of uncertainty surrounding debt issues in Europe and slow job growth."

Until the national and international economic issues start to improve, Goade added that real estate investment activity is likely to remain somewhat muted this year.

CRE Finance Council CEO Stephen Renna also indicated moderate conditions for the commercial market for 2012. At the CREFC January Conference in Miami Beach, he said real estate data from the end of last year points to some uncertain international investment activity given the debt crisis in Europe.



blog comments powered by Disqus