Demand from investors across the commercial real estate industry remains strong, said Raymond Torto, global chief economist at CBRE Group Inc., the world’s biggest commercial- property services firm.

“If someone said to you two months ago, ‘I will sell you the building at this price,’ he’ll stick to that price today,” Torto said yesterday at a conference in New York. “The buyer may have higher borrowing costs. That will slow things down, but I don’t see the seller changing his price. If that guy can’t get the money, there’s 10 guys behind him with the cash.”

Improving Economy

Rising interest rates probably would be the result of an improving economy, which would in turn benefit REIT shares, according to Sheila McGrath and Nathan Crossett of Evercore Partners in New York.

“We expect a bounce-back for REIT stocks and believe the recent selloff should provide investors an attractive entry point,” the analysts wrote in a June 23 report. “If rates are going up given an improving economic outlook and a bounce-back from unsustainably low interest rates, like it appears, we believe this short-term correction should be viewed as an opportunity.”

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