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Investment Property Dearth Cuts Returns, Real Estate Panel Says.

Knight Ridder/Tribune Business News, September, 2002

By Hubble Smith, Las Vegas Review-Journal Knight Ridder/Tribune Business News

Sep. 6--Too much capital chasing too few commercial investment properties is putting downward pressure on capitalization rates, a panel of real estate experts said Thursday.

Whether that represents a permanent change to traditional return measurements or a cyclical adjustment remains a topic of debate.

"I see the train coming, and I'm getting out of the way and letting it go by," said Michael Escalante, senior vice president of Trizec Properties in Los Angeles.

He was one of five panelists for the session, "Pricing Institutional Commercial Assets," at CB Richard Ellis' World Conference at Paris Las Vegas.

"In certain sectors, office and...

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