Principal Bets on Commercial Property As Bond Yields Fall

I understand that if Putin, Trump or Soros buy gold, even when gold prices are down, investors following that market also buy. And likewise if they sell gold, investors sell their gold, too. The idea is that even you aren't privy to the information Trump, Soros and Putin have, they are doing what they're doing because they have a good reason for it.

The same is true with commercial real estate investors. The big difference is that the information they have is available to all.

Summary: PFG "said it’s turning to real estate to increase investment income as near record-low yields pressure returns from bonds."

Key Quotes:

“The debt market is very strong, the equity market is growing” in commercial property, Chief Investment Officer Julia Lawler said in a presentation to investors today. “The fundamentals continue to improve, largely because there’s a lot of supply constraints.”

 Lawler said her firm has profited by acquiring real estate and attracting new tenants.

“We opportunistically buy distressed properties, lease them up and sell them,” she said. “It’s been a great performer for us.”

If huge multi-national companies are looking to add value to distressed commercial real estate to incease their bottom line, shouldn't you consider it, too?

Read the full article at Principal Bets on Commercial Property As Bond Yields Fall

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga