Where are the commercial real estate deals?

Survey finds banks aren't putting distressed properties on the market.

Commercial real estate investors are hearing about all the great deals out there, but when they go looking, they aren't having much luck, according to PricewaterhouseCoopers' Korpacz Real Estate Investor Survey.

Rents remain low and tenants are still hard to find. The survey reported that the average return in the first year as a percentage of investment declined in 17 of the 30 markets tracked by the survey.

Observers believe that the reason there is a dearth of good opportunities is because banks and other lenders are holding onto distressed property because federal guidelines issued last year give leeway to modify loans and avoid bigger losses.

Source: The Wall Street Journal, A.D. Pruitt (06/18/2010)