Distressed Properties' Bargains Harder to Find

ORLANDO-Investors hunting for bargain commercial properties in 2004 may have to search longer than in past seasons as more owners hold on to older assets, believing they can be refinanced quickly and sold later at higher prices in an improved economy, according to a new Marcus & Millichap market analysis.

“With rising employment giving owners the confidence that worst is over, many are holding recently refinancing properties and awaiting improvement,” says Steven M. Ekovich, first vice president and Florida regional manager for Encino, CA-based Marcus & Millichap Real Estate Brokerage Services Inc.

Ekovich says “investor demand remains strong for well-performing properties” but investment activity is “likely to remain slow for the next 12 months, unless vacancies subside more rapidly than expected.”