Goldman Sachs Asset Management will resume “actively investing” in U.S. commercial property this year because the market is bottoming out, its real estate head said, while other investors said the market downturn still had further to run.
Prices of U.S. offices and other commercial properties have fallen sharply in the face of higher interest rates and soaring vacancy rates that have outpaced other countries since the pandemic.
The plunge in prices has rattled confidence in U.S. regional banks with large exposure.
Investors gathered on the French Riviera this week for the MIPIM property conference, said the office sector would continue to struggle. A Brookfield Asset Management (BAM.TO), opens new tab executive on Wednesday called the U.S. “the most oversupplied office market in the world” and said investors had taken on too much debt.
Jim Garman, GSAM’s head of real estate, said he saw a buying opportunity.
