Publications

- May 2011: Vol. 23 No. 5

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Buy Low, Sell High: Property Owners Are Seeking to Cash in on Investors’ Insatiable: Demand for Core Properties

by Brad Berton

Today’s low interest-rate environment, improving real estate liquidity, concerns over secondary properties and markets, and fears about looming inflation are combining to sharply boost investor demand for core commercial properties in top-tier markets. Accordingly, values are rising and capitalization rates are falling. Property owners are seeking to position assets to take advantage of this huge buyer appetite.

Americans diverge widely in terms of the proximity they feel to President Obama and his re-election campaign dubbed “win the future.” As for relatively risk-averse real estate investors, many are looking to win future cash flows based on the proximity of their holdings to Obama’s current residence.

Indeed as a recent huge transaction along the stretch of Pennsylvania Avenue near the White House illustrates, buyers of varying stripes are competing heavily for high-quality, well-leased assets that seem likely to retain strong occupancies even if

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