In the last few weeks there have been several reports in professional publications describing  trends in commercial real estate capitalization rates and demand for different types of commercial real estate.    During 2006 there were reports of some institutional buyers holding back on new purchases waiting for capitalization rates to move upward in response to rising mortgage rates.  These players appeared to be in the minority and the “cap rate compressionâ€? they were hoping would diminish continued to exist for most of 2006 as strong demand from many other buyers […]

The Multi-Family sector of the commercial real estate market is indeed one of the strongest of all sectors within the commercial market. Bolstered by rising home prices, consistent vacancy decreases and rental rate increases, multi-family ownership is looking very much like the poster child for commercial investment opportunities. Stable and improving economies in major metropolitan areas are also fueling the demand for rental housing throughout the United States. Perhaps the brightest outlook for multi-family investors is the continued slow down in the addition of new product. Starts of new construction […]

The commercial real estate market throughout the United States is generally very healthy.  Unlike the residential market for one to four unit residential properties which has softened in many areas of the country, the commercial market is characterized by strong demand and, in many areas, limited supply.  There continues to be a good supply of mortgage funds and demand from buyers from individuals to major institutional investors who, in many cases, will bid aggressively for good property. Reasons for this strong demand generally include the healthy state of the U.S. […]