Increased Capital and Improving Fundamentals will Keep Commercial Real Estate Prices High in 2005

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2005 will be a positive year for commercial real estate in because of REITs, Pension Funds, Private Funds and Foreign Investors increasing their U.S. Real Estate Investments, according to Â?The IRETO ReportÂ?, 2005 forecast which was released today.

“With appreciation normalizing, rents slowly increasing in most markets, and interest rates slowly increasing, we believe that key in 2005 will be finding the right assets and having the right strategy for success”, according to Bryan Shaffer, president of IRETO (The International Real Estate Trade Organization). He continues, “Our general view of 2005 is that it will be a positive year for most commercial real estate assets. We think Hotels & Retail are the best to own, and that office carries the most risk. We also believe that using good real estate judgment will be critical in 2005. The key to success in addition to large capital inflows, will be for interest rates not to increase to quickly. We also need to experience improvements in rents and vacancy. “REITs, Pension Funds, Private Funds and Foreign Investors will drive the markets with increased investments, and will be net buyers.”

The report states that “As for private money, we think about 60% of this investor type will be net sellers. In 2003, it was less than 50% and in 2004 it was around 55%.”

The report outlines IRETO’s Predictions & Strategies for Investment Real Estate in 2005. It can be found at http://www.ireto.org/iretoreport.htm.

IRETO (The International Real Estate Trade Organization) is an international non-profit commercial real estate investment association that provides access to people, markets and information around the globe. Our web magazine keeps professionals informed on industry-wide events. Quarterly, IRETO also publishes “The IRETO Report,” a comprehensive guide to market and investment strategies.

Bryan P. Shaffer

Founder & President, IRETOTM (International Real Estate Trade Organization); For 20 years Bryan Shaffer has been involved in every aspect of commercial real estate. Three years ago, Bryan started IRETOTM with a simple goal of enhancing access to people, markets and information around the globe. IRETOTM now reaches over 30,000 professionals worldwide. Bryan has bought, sold and leased over $3 Billion of assets worldwide. He writes and lectures about international investment strategies as well as working for one of Japan’s largest real estate companies.

EYR Treasuries

IRETO, The International Real Estate Trade Organization

9903 Santa Monica Blvd, Suite 358

Beverly Hills, California, U.S.A. 90212

URL: http://www.ireto.org info@ireto.org

Contact: Bryan Shaffer, President

Phone: 1.323.309.9748 Fax 1-310-388-30282005 Dec 2005

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Bryan Shaffer
IRETO
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