Commercial Real Estate Market Reaching New Heights
SOURCE: The Motley Fool
While investors have fretted about the implosion of the housing market, the commercial real estate market has continued to reach new heights. Several factors are contributing to the vigor in commercial real estate and that is boding well for upcoming earnings reports.
Modest interest rates are helping to keep commercial real estate a target of investors. More new investors are also being lured into real estate investing as they become more familiar with how real estate investment trusts (REITs) work and the structure involved. In fact more 401(k) pension funds have added REIT investment options and are increasing their real estate allocation.
As always though, savvy investors look for areas in which office space remains in high demand. These markets which include New York, California, and metro D.C are bearing witness to the tight supply and rental increases that are taking place. Strength is likely to be reported by companies that are focusing their investments in these areas.
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While investors have fretted about the implosion of the housing market, the commercial real estate market has continued to reach new heights. Several factors are contributing to the vigor in commercial real estate and that is boding well for upcoming earnings reports.
Modest interest rates are helping to keep commercial real estate a target of investors. More new investors are also being lured into real estate investing as they become more familiar with how real estate investment trusts (REITs) work and the structure involved. In fact more 401(k) pension funds have added REIT investment options and are increasing their real estate allocation.
As always though, savvy investors look for areas in which office space remains in high demand. These markets which include New York, California, and metro D.C are bearing witness to the tight supply and rental increases that are taking place. Strength is likely to be reported by companies that are focusing their investments in these areas.
Read full report »
