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The commercial real estate situation in the United States is heading in a positive direction, according to Barry Sternlicht, chairman and CEO of Starwood Capital Group.
He explained that the market has improved significantly, as more investors have taken advantage of asset purchases with notable returns on investment, during an interview on CNBC. The market has been led by the multifamily market, which was due to many consumers looking for a rental property instead of purchasing a home.
"Commercial real estate is a yield vehicle," Sternlicht said. "People are looking for an alternative to buying high-yield bonds and Treasuries."
Many commercial investors have also looked at the residential market to make investments, according to Sternlicht. This is because of the ability to take advantage of low interest rates and not much downside in these safer purchases.
Sternlicht added that there are still problems with the U.S. government's economic policy, despite it being stronger than the European situation. The American situation revolves around low job growth and a lack of government intervention, while the European problem is more geared toward too little demand and development.
