Don’t run from CRE

By Geert De Lombaerde Posted on March 9, 2010 at 10:36 am

JPMorgan’s Michael Cembalest says investors should be careful about comparing today’s commercial real estate market to those from past recessions.

But still, the combination of price declines already in place, a slow but gradual economic recovery and a smaller supply overhang argue for some property exposure in portfolios. Another positive: for better or worse, the vast majority of maturing commercial real estate loans were rolled in 2009, whether owed to banks, insurance companies, or CMBS trusts, and often without new equity contributed.

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Tags: commercial real estate, investment management, JPMorgan Private Bank, Michael Cembalest, recovery  

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