Erin Patterson is at it again!
Our favorite research analyst at Jones Lang LaSalle has another chart of the of the week for us. This time she’s broken down the commercial real estate market to show where the institutional money is going.
The quick answer: not here.
The chart shows a huge disparity within the secondary market, which is also know as the “suburbs.”
In slicing up a recent report for Price Waterhouse Coopers, Patterson found that institutional investors (asset managers who have to pick “safe” investments for their clients) overwhelmingly prefer buying commercial real estate investments in Fairfield County, Conn., over properties in Westchester – to a shocking imbalance of 41 percent to merely 8 percent.
This means that the Westchester market is seen as a risky place to invest money from conservative places such as pension funds or AAA-ranked securities.