More Commercial Real Estate Sales Seen in 2011

New York, NY, Oct. 13, 2010--Commercial real estate investors anticipate more property sales next year, according to a survey Emerging Trends in Real Estate 2011 by the Urban Land Institute.

The report indicates that lenders will increase foreclosures to meet the demand for distressed properties.

But investors will continue to favor higher quality properties whose rents cover mortgages.

The report surveyed about 875 property owners, developers, advisors, investors, lenders and other property companies.

"You can no longer make money off flipping; you must be able to manage assets at the property level," the report said citing one interview.

About $1.4 trillion of mortgages on U.S. commercial real estate -- including apartment buildings, hotels, office buildings, distribution centers, malls and shopping centers -- are expected to mature by 2014.

Experts said a lot of cash has been raised to buy distressed properties. But for the past two years, their efforts have been thwarted by lenders extending maturities rather than foreclosing and taking back properties.