NAR: CRE Investment Set Record in '05

Investment in commercial real estate rose 44% last year to a record $268 million of investment-grade real estate (not counting transactions valued at less than $5 million), according to the National Association of Realtors."Investment-grade real estate has been changing hands at unprecedented rates, which demonstrates that the value of portfolio diversification into commercial real estate is being embraced strongly in the investment marketplace," said NAR president Thomas M. Stevens. "Many members of the National Association of Realtors underscore this wisdom in their own investments -- 13% hold an ownership interest in at least one commercial structure, and 39% own residential properties for investment in addition to their primary residence or vacation home." The association, in its latest Commercial Real Estate Outlook, also reported that vacancy rates are declining in all major commercial sectors, and rents are rising. The NAR can be found online at http://www.realtor.org.