Overseas Investors Looking To CRE For Income

Disappointing housing data has been one of the weak links in the US recovery, but commercial real estate (CRE) is becoming a more attractive asset class for sovereign wealth, pension funds, and wealthy families abroad who want are looking for income products that will survive the coming rise in interest rates.

“Instead of taking a hit with rising interest rates, they are looking at real estate as a bond surrogate, particularly where they can get cash flow or an interest payment like a bond,” says Tim Ng, managing director and head of research at Clearbrook Global Advisors in an interview with Aleksandrs Rozens for Bloomberg Briefs....