Blackstone’s Jonathan Gray: CRE growth rate will fall  

Global real estate chief at private-equity giant says limited construction is a factor

Jonathan Gray (Credit: Bloomberg News)
Jonathan Gray (Credit: Bloomberg News)

Jonathan Gray, global head of real estate at Blackstone Group, said the commercial real estate market is heading into a phase of moderate growth.

The supply and demand fundamentals of commercial real estate are holding strong even though the growth rate is slow as a result of limited construction, Gray, who became a billionaire last year after Blackstone’s stock surged, told Bloomberg News.

“We are clearly past the distressed phase,” he said.

The private-equity giant has been busy recently in Manhattan, buying Vornado Realty Trust’s 1740 Broadway for $605 million, as The Real Deal reported, and looking to unload 1095 Sixth Avenue for more than $2 billion. [Bloomberg News]Mark Maurer

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