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Rebound Will Boost Sagging Office Investment Sales, CBRE Analyst Predicts

ORLANDO-Lower cost of capital and lower interest rates will trigger a slight increase in activity this year, but buyers aren't picking up bulk portfolio sales as they did prior to 1999, Ronald J. Rogg tells GlobeSt.com.

By Alex Finkelstein | Updated on March 14, 2001

ORLANDO-Office property investment sales went south in 2000, posting only 24 sales covering 1.8 million sf valued at an aggregate $215.2 million or $119 per sf. That compared with 43 sales in 1999 covering 4.2 million sf valued at $427.6 million or $102 per sf.

But that 2000 scenario is expected to change for the better this year, Ronald J. Rogg, senior associate/investment properties in the Orlando office of CB Richard Ellis Inc., tells GlobeSt.com.

“The lower cost of capital will continue to have a positive effect on leverage transactions and lower interest rates should result in lower capitalization rates,” Rogg says. Debt capital sources are abundant, “but are not willing to do high loan-to-value deals,” he says.

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