Posted by
Christina Griego on Thursday, October 13th 2011
Real Estate Investment Panel:
by Kathy Warbelow
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Panelists said more rough weather is ahead for the commercial real estate market.
“We’re in about the second inning” of a massive delivering of a sector that overindulged on debt,” Taylor said.
For investors, there is an opportunity to “capitalize on distress,” said Bret Wilkerson, managing director of Hawkeye Partners, a real estate private equity firm that works with large institutional investors.
In the U.S., owners of some high-quality properties are “starved for capital,” and don’t have the resources to pay for tenant improvements or leasing commissions.
That creates an opening for investors to do recapitalizations and rescues.
In Asia, a future hot area will be development focused on the growing middle class in China and India, such as business hotels and retail outlet malls, said Grant Kelley, managing director and head of Asia for Apollo Global Real Estate.
Five years from now, he said, “That’s where the action will be.”