Search
 

The Mispricing of CRE Assets

The poster child for the overvaluation of CRE assets is San Francisco, CA and the entire Bay Area, says one source in this EXCLUSIVE commentary on the subject. But what are the most overpriced assets?

By Natalie Dolce | Updated on October 29, 2015

The commercial real estate industry is continuing its unparalled boom with increased investment and development activity, primarily in the core markets of San Francisco, New York, Boston, Miami, Chicago, Dallas, Houston, Seattle and Los Angeles. So says Joseph J. Ori, executive managing director of Paramount Capital Corp. and Adjunct Professor of Finance at the University of Phoenix.

“There is also an abundance of investment activity in the acquisition of large property portfolios and small capitalization REITs in going private transactions,” he says. “This booming activity since 2012 has produced another bubble in the CRE industry, similar to what occurred in the industry from 2003-2007 and before the Financial Crash that began in 2008, but with a greater overvaluation.”

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.