CHICAGO-Investing in commercial real estate was tough beforeSept. 11. While the terrorist attacks on the US made making dealstougher, there are still opportunities to be had, a panel told theNational Association of Industrial and Office Propertiesconference.

“Today's challenge will be for all of us to accept the fact wehave to move from Easy Street to the Eisenhower Expressway at5:30,” says Gary Kachadurian of RREEF Funds. He adds many aspectsof the real estate business, particularly property management andfinancing, have become more difficult. However, he adds, “Therecould be some real good opportunities out there.” Those couldinclude multifamily rental restorations, says Kachadurian, whosefirm has closed $600 million worth of deals in that marketsegment.

Benjamin G. Gifford, managing director of JP Morgan FlemingAsset Management, notes supply and demand “are in pretty goodshape,” even in the office sector, where 12% vacancy rates areconsidered equilibrium. “We as investors have a phenomenalopportunity to buy properties at fantastic returns at interestrates that are unprecedented,” Gifford adds.

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