Virtual real estate speculators notch another record deal
Investors are favoring apartments over other property types now more than ever. Nearly half of those surveyed, 46 percent, said they were most interesting in buying multi-family units, in a recent quarterly report by National Real Estate Investor, Retail Traffic and Marcus & Millichap. In the second quarter, only 38 percent had that preference. The next-best property type was considered undeveloped land, with 28 percent of investors choosing it as their favorite. Retail and industrial property followed with 26 and 24 percent, respectively. Hotels registered as most lucrative by only 18 percent of respondents. While multi-family properties have suffered from weak absorption levels and rising vacancies, investors’ preferences may reflect their relative stability compared with other properties, like office buildings. Investors expressed optimism about the outlook for the apartment sector, with a combined 74 percent predicting that rents will either increase or remain flat in the future as distressed properties make their way onto the real estate scene. [Retail Traffic Mag]
