Thanks to a planned $9.4 billion purchase by Blackstone Group LP, commercial buyers could be back in droves, say analysts[1]. While Blackstone takes over 588 of Australian Centro Properties Group’s U.S. malls[2], Ventas Inc., one of the nation’s leading health care real estate investment trusts (REIT) plans to buy out another healthcare REIT to the tune of $5.7 billion, making Ventas the largest U.S. owner of senior housing in the country. This is great news for U.S. commercial property, says managing director of Real Capital Analytics Dan Fasulo. “Both…deals are a great signal that liquidity has returned to the commercial real estate space,” he explained, adding that the two deals occurring in such a short period of time are likely to “have ripple effects on the entire industry.”

At this point in time, most analysts agree that a commercial double-dip is unlikely, though many housing experts do not feel able to say the same for the housing market. However, confidence in the market is, as always, still critical to recovery and growth. An increase in the volumes of deals and takeovers helps investor have confidence in the market, said Christopher Macke, a CoStar Group  senior real estate strategist. When that confidence is combined with low interest rates, investors find it difficult to resist “the prospect of cheaper financing and higher returns.”

Are you feeling optimistic about commercial real estate? This could be the year that the experts have been waiting for. Let us know how you plan to make your move in 2011.

Similar Posts:

Share