Скачать или смотреть No Commercial Real Estate "Fire Sale" Soon - Vivek Seth of Raymond James at REITWorld

http://www.reit.com Those anticipating a "fire sale" of distressed assets in the commercial real estate market may have to keep on waiting, according to Vivek Seth, managing director and head of the Raymond James Real Estate Investment Banking Group.

In a video interview with REIT.com at REITWorld 2010: NAREIT's Annual Convention for All Things REIT at the Waldorf=Astoria Hotel in New York, Seth said the federal regulatory system isn't pushing owners of distressed assets to immediately unload their holdings.

"There's an orderly liquidation underway for those who need to get out," he said.

Additionally, buyers are chasing "quality" assets, according to Seth. As a result, demand for distressed situations remains weak.

"Large center city properties, well-located assets -- for those, there's a very viable market in all sectors today," Seth said. "Until that whole space clears out, I don't think we necessarily have to deal with the distressed real estate in a fire sale fashion."

Looking ahead, Seth noted that the commercial real estate market will likely need an equity injection of nearly $1 trillion in the coming decade. As a result, the market for initial public offerings for REITs will heat up in "fits and starts," he speculated.

"In the long term, the IPO markets are going to play a very useful role in re-capitalizing the sector," he said.

Seth pointed out that valuations in the public and private markets for commercial real estate portfolios are relatively close. The requisite "pricing arbitrage" needed to entice private players seeking "value maximization" to take their companies is lacking, he said.

Consequently, investors can expect to see "core, strategic companies" going public, he said. "It's not the way out, it's the way to re-start," he said.

In terms of sectors where there could be more offering activity, Seth observed that the major REIT sectors -- office, retail, multi-family and lodging -- had already witnessed an early wave. The lodging sector has been particularly active, he noted.

"I think that the specialty sectors need more representation in the public markets today," Seth said.

By Allen Kenney