Real estate investors are shying away from risky funds in new developments and shifting more toward the bcoreb funds of buildings that already are well-leased and looking stable, according to this Wall Street Journal article.

WSJ reports,

bThe trend has effectively split the real-estate market: Values of mature, well-performing properties are increasing, while turnaround situations continue to suffer.b

Buildings with higher vacancy levels are being avoided by investors, meaning their value likely will continue to drop. Wall Street has also taken note, with Goldman Sachs Group Inc. starting an asset-management business centered on bless-risky property deals.b Raising money from investors and pension funds, the business will try to acquire core property with long-range tenants and only small amounts of debt.

Read more about the investorsb switch here, and then let us know what you think. Will stable buildings continue to stabilize as barely leased buildings continue to suffer?

Graph credit: The Wall Street Journal


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