Jon Gray: CRE Should Expect Moderate Growth
Blackstone real estate head Jon Gray said in a Bloomberg interview today that commercial real estate is "clearly passed the distressed phase" but that growth rates still aren't as strong as they were in the past. He cited limited construction and strong demand as the sort of solid market fundamentals leading to Blackstone's real estate investment spike. The company has $1.5B worth of commitments for a fund focused on stable RE assets.
The industry may be moving into a "moderate growth phase" stateside, but Blackstone is still interested in distressed properties in the still-struggling Euro zone economies of Portugal, Italy and Spain. He added that India, which Blackstone entered before its competitors, also presents enormous opportunity. As for inspirational industry investors, Gray lavished praise on Equity Group Investment's Sam Zell and Vornado's Steve Roth.