Investors Still Like CRE Yields Amid Uncertainty

HOUSTON—Amid a still-plodding domestic economy, investors starved for yield are still looking for it in the safest place at the moment: commercial real estate. So says the August edition of Transwestern’s monthly “The Briefing” report.

“Both debt and equity markets remain highly liquid and competitive as commercial real estate continues to offer attractive yield to income-oriented investors and opportunistic upside for those investors looking for higher return and higher risk investments,” according to Transwestern’s chief investment officer, Tom McNearney. He notes that the first quarter saw a 13.5% year-over-year increase in CRE sales on assets valued at $10 million or higher, for a total of $74.1 billion in transactions.