CRE Investments in 2011 More Likely, More Risk, Too

It's beginning to look a lot like 2011 will be a better year for the CRE industry and CRE investments than 2010 and 2009. That's good news for an industry and a nation. According to the fourth quarter 2010 findings of the PwC Real Estate Investor Survey,  interest in secondary locations, Class-B properties, and value-added Class-A plays is heating up and that buyers are becoming more comfortable with taking on slightly more risk, suggesting that both investors and lenders are gaining more confidence in the overall performance of both the economy and the real estate industry. Although buyers are not rushing in droves to acquire noncore assets and offerings in secondary markets, riskier plays are enticing a growing number of investors as the market for trophy deals is becoming saturated with eager capital.

Could the Tsunami we've been hearing about for the last 24 months or so actually be a reality in 2011? Who knows, but the fundamentals will continue to reign supreme as the survey notes in that core assets will likely remain the primary focus of investors, keeping competition and pricing strong for the best quality assets offered for sale.

Remember to have TEAM of like-minded professionals working with you and invest “well” in this market space.