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A Real Estate Revival?

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    John B. Levy & Co. President John Levy on the recovery of commercial real estate markets.

  • Duration 3:27
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Had up to four years of stagnant growth the commercial real estate market is roaring back.

Since I have 34% 2012 and so far the -- has been in core markets.

But with securitized lending market rampant back up and lending standards loosening many experts expect broad based improvement this year.

So for more on this we are joined by president of John.

John let's first talk about.

Core markets what are the core markets that we're talking about.

I think they're five or six core markets Washington and Boston New York Chicago San Francisco.

LA those of the 24 -- cities that hold -- People consider core.

And what are we seeing strength in offices apartment buildings condos and where -- and -- offices and apartments for -- We're seeing a lot more going for example in Washington.

That starts this year in the area will probably triple the average for a new apartment -- a lot especially in the area that.

That got concerns about the fiscal cliff.

I -- really interesting because you know everyone does -- should I rent should I buy calculator.

And more and more lately.

It's leaning towards buying and -- -- -- rentals are still on the.

-- yeah I think buying is a really good cure right now -- are going up markets are tight.

But eventually.

It's so cheap to have to borrow money to buy a house that.

It's got to -- is there -- mature market for securitized lending of commercial mortgage backed securities so we have this huge market.

And in fact right now to interest -- we are at the lowest rates since the collapse and -- six.

Since 07 so this to me is an incredible time to borrow as much as you can.

For as long as you can because it won't be different forever we saw the numbers go up fourth quarter but a lot of that had to do -- -- -- -- -- you know I think some of the -- those of us dollars but don't forget for every seller there's a buyer so buyers are.

It's starting to become a little bit more optimistic.

And I think part of this is because secure this securitized market is back.

So instead of just being I would do invested six or eight markets you can now invest in 3040 or fifty markets -- securitized lending.

Really does -- broaden the up the platform.

Do you worry though about this you know especially stores and malls going home you know the way the dote over because the Internet brick and mortar kind of -- -- I do worry about that everybody worries about retail.

The Internet is making a big.

Making a huge impact.

You know best buys a perfect example there having fewer stores in the stores are having are smaller.

But -- instead there's still some strips that you want our own grocery anchored and obviously the favorite.

There's some apartments who want to own office buildings -- still problematic because businesses are are having a hard time deciding whether they want to expand in Muni.

Or just contracting in the space -- -- So and and Google of course just announcing that they're gonna open source OK so you're saying then it's -- multifamily.

Units still that you're looking at not so much the office buildings.

Yeah I think I think multifamily is a hot thing we actually still like hotels and I think we like them because if you believe that businesses coming back.

They can raise the rates every night so hotels really haven't had much of a play yet we think it's coming that way.

I still think that that although multifamily has room to run.

It's getting towards a -- getting a little -- heavy for -- blood bank has assets suffered by John let me thank so much for being here pleasure being.

Some good news some good news and --

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