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Commercial Real Estate Bubble Feared: Prices, Vacancy Rates are High
NewsObserver ^ | 7/20/2005 | Terry Pristin

Posted on 07/20/2005 6:57:42 AM PDT by ex-Texan

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To: ex-Texan
Commercial real estate is awash with capital, and many buyers are accepting initial returns of 5 percent or even less because they have few investment alternatives. Once interest rates rise and investors can buy 10-year Treasury bills with a 5 percent yield, real estate will seem less attractive, Titus said.

There is a reason the commercial real estate market is awash with capital, and yield is only part of the equation. When you can also leverage T-bills at a 10-20 to 1 ratio, then real estate will seem less attractive...

21 posted on 07/20/2005 2:43:29 PM PDT by mac_truck (Aide toi et dieu l’aidera)
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To: Mr. Jeeves

Many years ago I worked in B of A's downtown tower. Small world, "nicht wahr?"


22 posted on 07/20/2005 6:26:34 PM PDT by ex-Texan (Mathew 7:1 through 6)
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