U.S. Commercial Property 'Substantially' Off Bottom, Roth Says
(Bloomberg) -- U.S. commercial property prices are recovering and "substantially" off the bottom after more than a year of decline, said Steven Roth, chairman of Vornado Realty Trust.
Hotels and multifamily properties are leading the rebound, with South American investors purchasing condominiums in Miami, according to Barry Sternlicht, chairman of Starwood Capital Group LLC in Greenwich, Connecticut. Roth and Sternlicht, along with William C. Rudin, co-chairman of Rudin Management Co., spoke at the Bloomberg Link Real Estate Briefing today in New York.
"The recovery has been more rapid than anybody expected," said Roth. He said his New York-based company hasn't purchased as many properties as it would like. "We've been trying, but apparently not hard enough," he said.
U.S. property deals probably will double next year and may account for almost a quarter of global transactions, according to a forecast by New York-based research firm Real Capital Analytics Inc. Investor capital available to purchase real estate in the Americas rose by 54 percent since December, London-based broker DTZ Group Plc said.