TORONTO—Investors are continuing to tune out the noise and focusing on US commercial real estate to find the yields that may elude them elsewhere, Avison Young says in its Fall 2016 North America, U.K. and Germany Commercial Real Estate Investment Review. “Irrespective of the ongoing conversation around potential interest-rate hikes and new geopolitical factors such as the Brexit fallout, abundant capital continues to seek the stability and returns that the commercial real estate sector still offers,” says Mark Rose, chair and CEO of AY. The report covers 51 markets across the US, Canada, the UK and, for the first time, Germany.
“Historically low interest rates continue to fuel our industry,” Rose says. “Simply put, if there were some adverse event that caused interest rates to move up, we would have a correction—and that's not necessarily a bad thing.” At present, though, “we don't expect to see rates move for a considerable period of time, thus keeping commercial real estate top-of-mind with many investors, compared with alternative investments.”
Domestically, AY says that despite some overall moderation of volume compared to the year-ago period, real estate remained an attractive investment in this year's first half. AY cites a tremendous amount of capital chasing core, core-plus or opportunistic deals during the past year, with strong demand for all asset types.
Recommended For You
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.