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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: RealMuLan who wrote (24293)2/24/2005 4:09:55 PM
From: RealMuLan  Read Replies (1) of 116555
 
Outlook for real estate rosier

Conference speakers predict return of investors

By Greg Avery, Camera Business Writer
February 24, 2005

DENVER — The Denver metro area's commercial real estate market is showing signs of health and may be poised to see some of the investment bonanza that has been raging for months in other parts of the country.

That was the assessment of most speakers at the University of Colorado Real Estate Council's annual conference Wednesday. Several hundred real estate professionals gathered at the Denver Marriott City Center to hear the forecast, as well as some of the cautionary words that accompanied it.

...

Panelists also sounded notes of caution about expecting the deluge of money available for real estate investment to continue forever.

A lot of the money is being channeled by private real estate investment trusts promising good yields and attracting droves of individual investors who seek a more solid investment than stocks. Some trusts are pulling in millions of dollars a week and can't find properties to spend it on fast enough, a trend driving prices to unrealistic heights in some deals and exposing investors to risks they don't understand, panelists said.

Jim Curtis, founding partner of The Bristol Group investment company in San Francisco, bluntly warned that many of those investors don't comprehend that if interest rates swing closer to their historical norms, the yields they were sold on won't materialize.

"I think some people are going to get hurt," he said.

dailycamera.com
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