http://www.therealestatebloggers.com/2006/10/04/real-estate-funds-are-hot-in-cooling-market/ Real Estate Blog, Mortgage, and Development News Sat, 21 Nov 2009 03:38:54 -0600 http://wordpress.org/?v=2.8.6 hourly 1 http://www.therealestatebloggers.com/2006/10/04/real-estate-funds-are-hot-in-cooling-market/comment-page-1/#comment-7092 Spencer Hill Thu, 05 Oct 2006 03:46:19 +0000 http://www.therealestatebloggers.com/2006/10/04/real-estate-funds-are-hot-in-cooling-market/#comment-7092 Most funds and REITs (traded and non-traded) are based in commercial property in the top 20 MSA's and are fairly liquid properties as far as real estate goes. Also these properties values are based on their income production. Therefore if the market overbuilds Class A office properties the value in that market goes down because rents are lower, but most these properties have long 5-10 year leases to Fortune 500 companies so the properties value stays up. Its not as easy to add more inventory in the institutional commercial real estate market as it is in the residential single family market. Most funds and REITs (traded and non-traded) are based in commercial property in the top 20 MSA’s and are fairly liquid properties as far as real estate goes. Also these properties values are based on their income production. Therefore if the market overbuilds Class A office properties the value in that market goes down because rents are lower, but most these properties have long 5-10 year leases to Fortune 500 companies so the properties value stays up. Its not as easy to add more inventory in the institutional commercial real estate market as it is in the residential single family market.

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