Commercial Property Prices Set to Climb : Bryan Ellis Investing Letter

If 6 percent sounds like decent appreciation ? and it does to most property investors these days ? then you might want to turn your attention to the commercial property sector. According to Green Street Advisors Inc., commercial property values in the United States will ?probably climb about six percent in the next six months.? This figure is based on recent trading trends in real estate investment trusts (REITs) and fixed-income yields, said the firm[1]. In fact, REIT investors appear more optimistic than ever, said Green Street researchers, who also cited ?decreased skittishness? as a reason for their optimistic outlook.

Perhaps not surprisingly, the apartment industry is seeing the most exciting growth and getting the most attention in the commercial sector right now. In fact, in many areas of the country rents are already ?soaring? as jaded former homeowners find themselves unwilling or unable to reenter the housing market as owner-occupants. And investors are happy to oblige the demand, continuing to ?view apartments as a preferred asset class in today?s environment,? said National Multi Housing Council (NMHC) chief economist Mark Obrinksy[2]. While OBrinsky does expect that growth in the apartment sector might ?ease somewhat moving into 2012,? he believes, along with many investors, that ?long-term demographic changes favor rental housing.?

Are you investing in rentals? Do you prefer single-family units or multifamily housing?

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[1] http://www.bloomberg.com/news/2012-02-02/u-s-commercial-property-prices-to-climb-6-green-street-says-in-forecast.html

[2] http://www.sacbee.com/2012/02/02/4234854/apartment-industry-continues-recovery.html

Category: Real Estate

Source: http://investing.bryanellis.com/631/commercial-property-prices-set-to-climb/

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