Commercial Real Estate Investing
Commercial real estate investing continues to be fraught with volatility and uncertainty in the US market as participants search for stability. One fund manager summed up the current state of the market by saying that "all the money is in trophies and trash."
This is especially true in the area of apartment properties, but more broadly speaking there is plenty of money continuing to flow into areas where investors feel there may be a solid foundation they can build upon. For example, properties that define the "trophy" standard would be Pennsylvania Avenue in Washington or Fifth Avenue in New York City. However, there are also "trash" properties which are in a distressed situation, and they could also be defined as stable because prices have hit rock bottom. Apartment properties represent a third area that is attractive to investors in this market as population and demographic trends are favoring this property type.