Look for Pension Fund Players to Return to Class A Office/Industrial, G&E Predicts

ORLANDO-A lackluster investment performance in 2000 could turn around in 2001 from an expected drop in interest rates this quarter by the Fed, according to a new market analysis by the Orlando office of Grubb & Ellis Co.

Returning to the investment fold will be pension fund players hunting for buys in industrial and class A office, Grubb investment specialist Steve Flanagan tells GlobeSt.com. Strong net absorption in 2000 in the office, retail and multifamily markets should also rekindle interest.

A continued perception of a supply/demand imbalance in the Orlando market should temper the recovery in apartment sales volume,” Flanagan says. “The key to transaction volume in 2001 may be the willingness of investors to buy at price levels demanded by owners under no pressure to sell.”