PHILADELPHIA, PA—US commercial real estate markets can expect to see cap rate compression, rental rate growth, and declining vacancy in 2015, with the pressure coming from foreign capital fleeing political and economic turmoil abroad, says Arthur Pasquarella, executive vice president and chief operating officer of Equus Capital Partners, Ltd., one of the panelists featured at ALM's RealShare Philadelphia Conference February 10 at the historic Union League Club.
In comments provided exclusively to GlobeSt.com in advance of his appearance at the conference, Pasquarella says “As hard as it is to believe we may be poised to experience further cap rate compression in the US real estate markets. Steady, if not spectacular U.S. job growth is leading to declining vacancy rates in many markets across the country.”
Pasquarella says that “This is leading to an acceleration in rental rate growth and hence the expectation for increased real estate earnings,” and observes that foreign debt and equity may be the cause of cap rate compression.
Equus Capital Partners isa national real estate investment and development company with property holdings comprising office, industrial, multi-family and retail across the country.
“Economic slack and political turmoil across many major global markets is leading to an unprecedented flow of both foreign debt and equity to the US real estate market,” he says. “These domestic conditions coupled with yet another precipitous drop in interest rates is a recipe for a further decline in cap rates across many U.S. markets and property types. In short capital is chasing earnings and the U.S. property markets appear sufficiently stable to be a safe haven for global investors.”
Pasquarella will join moderator Jonathan Grosser, partner, chair, Real Estate Practice Group, Stradley Ronon Stevens & Young, LLP; and panelists Bradley J. Korman, co-chief executive officer, Korman Communities, Inc.; Chip Walters, chief investment officer, Keystone Property Group; and Robert W. Walters, executive managing director, CBRE on an Industry Leaders Panel scheduled to start at 8:05 a.m.
The conference kicks off Tuesday, February 10 at 7:30 am at the Union League Club, 140 South Broad Street, Philadelphia.
More information on the RealShare Philadelphia Conference is available at http://www.globest.com/events/realshare_event/philadelphia/RealShare-Philadelphia-2015-352566.html.
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