A new study by two respected industry groups notes that any sustained recovery in the commercial real estate industry in 2010 is limited given continued high unemployment and weak market fundamentals. However on the upside, the headwinds are creating a “once-in-a-lifetime opportunity” to buy quality properties.
“The recovery will vary by geographic location and property type, but for investors seeking to seize market opportunities, 2010 will be the best time in generations to buy well-priced, quality commercial real estate,” says Ken Riggs, CCIM, chief real estate economist of the CCIM Institute and president and CEO of Real Estate Research Corporation (RERC). “Investors should view 2010 as a once-in-a-lifetime opportunity to snag key long-term investments.”
The quarterly report was released by the CCIM Institute and the RERC.
Riggs says that alternative sources of financing in 2010 include newer local banks, the pooling of funds from wealthy individuals, increased owner/user financing, credit unions, regional banks, and insurance companies.
“Who is buying commercial real estate? Private funds are the powerhouse buyers. Also active are the cash-rich or high net worth investors, large institutions and groups, REITS, foreign investors from Canada, China, and Germany, and opportunistic buyers,” says Riggs.