LOS ANGELES-Real estate investors are back, and with them, investment opportunities are expanding. The relative value of real estate is climbing, especially when compared to other asset classes such as bonds, stocks and operating companies. As a result, the risk adjusted value of commercial real estate is now attracting many new equity investors.
In both the debt and equity real estate capital markets, asset allocation models are now considering real estate to be a preferred asset class. As a result demand for investment opportunities is on the rise, paving the way for a broadening definition of the types of assets and markets that can now attract capital. The major changes in the current investment market center around the investors themselves, the assets which can now be financed, and the structure of the financing available.