Record Levels Of Investor Capital In Real Estate Funds Remain Unspent

Offices, office market, office building

Investors continue to throw billions into real estate funds as they up their bets on real property, but a shortage in supply is limiting money managers’ ability to spend.

Last year, global funds had about $237B left over to invest in commercial property as the year came to a close, an increase from the $229B remaining in 2015. These record levels of unspent investor capital are a growing challenge as investors increasingly turn to commercial property for safety and high yields, the Wall Street Journal reports.

As billions flow into REITs, the amount of property up for sale is not keeping pace with demand, especially since landlords are unwilling to unload assets (what with low debt levels and available bank financing) as they eye opportunities for high returns down the road. [WSJ]

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