Many investors have steered clear of risky acquisitions this year, opting for completely leased office buildings. Though investors likely will continue seeking low-risk properties, office sales should increase in 2011, according to this National Real Estate Investor article.
Commercial real estate professionals still expect a slow recovery, as the office market has remained pretty stable over the last three quarters. According to NREI, hereb s what we can expect for the coming year:
b Several factors will help spur higher sales next year. Returns on quality office properties remain favorable compared to alternative investments such as bonds and T-bills. Rising prices over the past six months will help encourage more owners to sell, which will help to alleviate the shortage of properties on the market. In addition, the financing climate continues to improve with more readily available, low-cost debt.b
What do you expect for the office market in 2011? Leave a comment with your predictions.
Tags: commercial real estate, investors, office buildings, properties, sales
