American commercial property transactions could skyrocket in 2012

Posted by Amrock
A significant jump could be witnessed in commercial property sales in 2012, according to a projection by Real Capital Analytics.
Property transactions in the commercial real estate industry could witness a 50 percent increase during 2012, which is close to $300 billion more, according to the predictions, which were reported by Bloomberg.
Overall, there is $160 billion worth of mortgages considered distressed in the commercial real estate sector, and these need to be fixed by selling the properties or refinancing.
“Commercial real estate remains very attractive relative to other asset classes, and it is likely that equity capital will be both more plentiful and more motivated over the coming year,” the report’s authors noted, according to the news source.
Loans coming due may force transactions to occur, and investors will need to act quickly. This is because rents will grow as the vacancy rate continues to go down, Bloomberg noted, citing the report.
The sector is also hampered by the European debt crisis, which could help increase sales activity in the United States.