This week’s OBP Perspective is provided by Tom Powers:
Despite all the issues the US and the world are facing (unrest, unemployment, slow housing recovery, debt ceiling, etc.) we continue to see tremendous interest in investment real estate. Both the amount of capital and the number of investors with capital seem to be on the rise. We have recently come to market with two separate large office and industrial portfolios ($100 and $400 Million range) with our colleagues on the east coast. The number of confidentiality agreements being signed is at levels we have not witnessed in years. When 150 different investors want to take a look at a $400 Million portfolio you know that there is a lot of capital looking for transactions. We hear of similar interest levels from around the country on large, well located, quality assets. This capital flow has not been lost on owners and we are now seeing a considerable amount of product coming to, or about to come to market. The market is still bifurcated but the industry appears to be back in full swing and everyone seems to be extremely busy again. Hope it lasts and hope the unrest, unemployment, slow housing recovery and our debt issues all take a turn for the better. If they do, that will be good for everyone and should bode well for the commercial real estate industry.