Lenders' Insatiable Appetite for Commercial Real Estate
What's Driving Institutional Investors' Bumper Crop? | by Ben Johnson | Institutional investors have enjoyed strong returns on their real estate portfolios during the first half of 2011, Ben Johnson explains. He points to the example of the New York State Common Retirement Fund, which "reported a 26.7% return on its real estate portfolio for the fiscal year that ended June 30, 2011. That performance topped every other asset class in which the fund invests." Dr Sam Chandan adds that "high-quality, cash-flow-performing properties with strong liquidity characteristics have recovered a large measure of their initial value, as much because of credit and capital market conditions as fundamentals."
Read the full story at the National Real Estate Investor website.