Commercial real estate investor outlook in 2006 strong.

Position:Results of survey

Look for commercial real estate investment activity to remain strong in 2006 even as investors cast a wary eye on rising interest-rate activity, according to Encino, California-based Marcus & Millichap Real Estate Investment Brokerage Co.

Marcus & Millichap, in its 2006 Real Estate Investor Outlook survey, conducted in partnership with National Real Estate Investor, New York, noted that nearly 70 percent of those surveyed planned to increase their commercial real estate investment during 2006.

However, a continuing theme of caution was revealed throughout the survey as more than 60 percent of respondents cited rising interest rates and unforeseen shocks to the economy as their top concerns for 2006, according to Hessam Nadji, Marcus & Millichap's managing director, research services.

"As long as interest rates rise in an orderly, measured fashion, and this happens along with improvements in occupancies and rents, it is not going to create a major disruption in the investment market," said Nadji.

The study predicted that investors with large commercial real estate holdings are likely to diversify across all property types, with the majority, or 58 percent, investing in apartments.

Eighty-two percent of respondents said they...

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