SAN FRANCISCO-Commercial real estate is doing well in the face of a prolonged housing crisis, said Hessam Nadji, managing director of research and advisory services at Marcus & Millichap, during a recent appearance on CNBC’s Realty Check.

“US real estate investing has become a matter of not throwing out the baby with the bath water,” he said. Right now commercial real estate is still facing a solid recovery compared to its residential-asset counterparts.

Commercial real estate distress sales only account for 10% to 12% of overall transactions in the industry, compared to 25% to 30% in residential real estate.

Additionally, in commercial real estate, pricing has reached bottom and fundamentals are stabilizing, Nadji pointed out. Plus, people who would normally be buying houses right now are staying in apartments because they aren’t convinced the housing market has bottomed out.

Nadji does not see the changes in apartment fundamentals taking place in the near future, and there is also a limited supply of the assets right now, making them even more attractive. Click here to watch the full CNBC Realty Check video.


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