Real Estate Investor Focus Predicted to Shift
Real estate experts at the University of Southern California Lusk Center for Real Estate are predicting that money invested in U.S. commercial real estate will slow in 2006.
“Investors will stop signing blank checks,” says Stan Ross, chairman of the board of the Lusk Center in comments Tuesday. “That’s a healthy sign for property markets.â€?
“While foreign and U.S. investors are continuing to acquire properties, they are showing more discretion,” adds Stuart Gabriel, director of the Lusk Center. “On the residential side, flipping of properties has come to a virtual halt as markets have cooled.”
USC experts believe that investors will instead focus more on bond-like investments in 2006. Mr. Gabriel says. “They will look for well-located properties that provide steady cash flows as well as capital preservation and competitive returns.”