Commercial property deals set to double during 2011

U.S. commercial property deals may double this year as confidence builds among investors who believe those values will rebound, Bloomberg News reported. Blackstone Group’s planned $9.4 billion purchase of U.S. shopping centers and Ventas’ proposed $5.7 billion buyout of a healthcare real estate investment trust may be a sign that a wave of commercial real estate acquisitions is coming as buyers regain confidence in the market. “Both these deals are a great signal that liquidity has returned to the commercial real estate space,” Dan Fasulo, managing director of Real Capital Analytics, said. “It certainly will have ripple effects on the entire industry.” Transactions surged over the past year as the economy began to recover and low interest rates made it cheaper for REITs and private equity buyers to acquire properties. Completed acquisitions by U.S. REITs more than tripled to $24 billion in the 12 months through the end of February compared with the previous year, according to data compiled by Bloomberg. Fasulo said he “wouldn’t be surprised” if U.S. commercial property purchases double in 2011 from almost $140 billion in 2010.

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