VIDEO: Sitt calls commercial real estate market a “utopia”

Thor Equities head, Don Peebles see continued market strength

A growing number of observers reckon the real estate market is heading for a correction in 2016, but Joe Sitt and Don Peebles are having none of that.

Peebles, head of the Peebles Corporation, believes demand for apartments is stronger than people think. “There’s a lot of pre-construction sales, and those sales have not gone to record yet,” he told Bloomberg. “So while velocity appears down, it is more active of a market,” he said, although he cautioned that the condo market may still slow down somewhat and rentals will “pull back.”

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Joe Sitt, of Thor Equities, is similarly optimistic about the U.S. commercial real estate market. “It’s actually, right now, utopia,” Sitt said. “What do I mean by that? You’re still not peaking in terms of where the rents are as compared to where the prior peaks were.”

Listen to his reasoning in the video above. [Bloomberg]Konrad Putzier