Investors are starting to look at riskier deals and are willing to take on more risk to get returns, as they see signs that the economy is likely to avoid a double-dip recession, according to PricewaterhouseCoopers’ real estate investor survey.
“The sentiment among investors has improved significantly from a year ago, demonstrating an acceptance of where the market is today and where it will likely be in the near term,” said Susan Smith, director of the real estate advisory practice at PwC, and editor-in-chief of PwC’s quarterly survey. “Although some investors are now looking to take on more risk, a full movement to secondary markets and riskier plays won’t occur until a healthier U.S. employment picture develops.” According to the survey, the national apartment sector is expected to see improvement with positive rental rate trends over the next two years. Despite record-high vacancies and continuing declines in rental rates, the report notes, acquiring warehouse assets remains a primary goal for many investors.
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