The Real Deal Miami

Commercial investors frustrated by options

June 21, 2010 04:00PM

Susan Smith, PwC real estate advisory director

Commercial real estate investors are feeling frustrated over a lack of so-called “quality” buying opportunities as a result of the widespread perception that purchasing options would have abounded by now, according to a recent report by PricewaterhouseCoopers. The second-quarter survey showed that many investors see less risk in commercial real estate purchases, as the average capitalization rate declined in 17 of the 30 major markets that the study covers. Markets examined in the survey include regional malls, medical buildings and suburban office properties. Susan Smith, director of PwC’s real estate advisory sector, said that the survey is a tentatively good sign. “While most investors sense that the worst is over in terms of market deterioration, supply greatly outweighs demand across all property sectors keeping overall vacancy rates high and rental rates on a downward trend,” Smith said. TRD