To Stay Put, To Buy or To Sell? Those Are The Questions.
There is a reason that the rich get richer while the poor get poorer. A recent article published in the Wall Street Journal summarized a study of high-net-worth individuals and their investment strategies with regard to their Commercial Real Estate portfolios. The data revealed that 47% of high-net-worth investors are looking to add to their portfolios during the economic downturn. In comparison, 12% of those polled have decided to dispose of their Commercial Assets. The balance, well, they were uncertain.
Yes, the 41% piece to this puzzle that is missing is the undecided investor. Right now, most of America is inline with this uncertainty. With regard to Real Estate Investment and Asset Management, vacancy rates in the Office and Multi-family markets are up. Real Estate values have declined, as have the rental rates brought in by those assets. It is a good time to negotiate with your landlord, but an even better time to negotiate a purchase or sale with a distressed property owner.