Avoiding Risk in Today's Market
In this podcast, RERC CEO Kenneth P. Riggs Jr., who also serves as chief real estate economist for the CCIM Institute, discusses investor confidence, risk aversion strategies, and the outlook for the smaller tertiary markets. Listen to Ken as he notes that investors are doing their homework and due diligence, and are buying right and buying for the long term....
A Bifurcated Market
With more capital available from select sources and increased demand for less volatile investments, institutional-level commercial property prices are on an upward trend, states Ken Riggs, president and CEO of Real Estate Research Corporation and chief real estate economist for the CCIM Institute. However, in this CCIM Institute-sponsored podcast, he further explains that the commercial real estate market is increasingly divided, with some historically high prices being paid for institutional properties in top-tier markets, while other markets are seeing little or no transaction activity other than distressed property sales. Listen to Mr. Riggs discuss the challenges for investors in this bifurcated market...
Continuing on the Path to Recovery
In an abbreviated edition of his semi-annual podcast to members of the CCIM Institute, RERC's Ken Riggs noted that while investors remain nervous about the volatility we are seeing in the stock and bond markets, much equity is still sitting on the sidelines "looking for a home." Commercial real estate—and the reduced amount of risk associated with this investment alternative—is looking decidedly more attractive. Even so, investors are taking the time to “get it right” during this prolonged recovery period…
Tough Times Continue
RERC's Ken Riggs notes that while institutional real estate has been forced to mark to market and prices are close to bottoming out, the broader commercial real estate market still has a ways to go and it will take some time to "come clean." Listen to Riggs' view of what the industry and investors should expect in 2010 and beyond.
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Emerging from the Rubble
This article authored by RERC's Ken Riggs and published in the newly released Real Estate Issues takes a close look at investment returns for commercial real estate for 2010 and 2011. Bid-ask spreads are starting to narrow and investment capital is becoming more available, but the challenge in bridging market pricing to market values amid the uncertainty that surrounds forecasting cash flow under stressful economic conditions remains. click here to download
However, values and pricing are expected to gain greater equilibrium by year-end 2010, resulting in a more active and fluid transaction market, but for the near and medium term, investment returns will focus on the income/dividend component vs. chasing value appreciation. Real Estate Research Corporation expects commercial real estate, on average, to begin recording positive total returns (income and capital changes) again in 2011.