Search
 

Investors More Bullish on RE Distress

NEW YORK CITY-More respondents to this year's North American Distressed Debt Market Outlook Survey favor real estate than any other sector.

By Paul Bubny | Updated on January 26, 2010

NEW YORK CITY-Real estate has gone to the head of the class as far as investors in distressed assets are concerned. Forty-one percent of respondents to the fifth annual North American Distressed Debt Market Outlook Survey released Tuesday say they believe real estate represents the best sector for opportunities this year. That’s more than any other sector, and represents a sharp rise from the survey released a year earlier, when only 19% of respondents allocated investment to commercial and residential real estate opportunities.

At least part of the explanation for the rise in real estate’s standing in the 2010 survey is pretty obvious, thinks Mission Capital Advisors’ David Tobin: the outlook today compared to a year ago, when the collapse of Lehman Brothers was fresh in everyone’s minds. “Looking back into the fourth quarter of 2008, it looked very ugly,” Tobin tells GlobeSt.com. “At the same time, prices on fixed-income assets, meaning CMBS and RMBS, were in free-fall. Nobody could predict the bottom, and all they could see was the giant explosion back in September ’08.”

Today, says the Mission Capital principal, “we’re in a lower interest rate environment than we were. There seems to be a lot more liquidity in the system, and spreads for riskier assets have tightened dramatically compared to a year ago.” Tobin adds that there’s “a little more visibility on the horizon with regard to job losses or growth, vacancy increases or declines and economic activity.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 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.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.