"When there’s a rush to yield, you shouldn’t be in yield," warns Tom Barrack, the billionaire chairman of Colony Capital because real estate investors could be in for a shock if interest rates rise or demand in some markets continues to fall because “amateurs” are plowing money in at high prices, betting on rent increases that may not continue.
“It looks a little bubblicious,” Barrack said of the real estate market. “We’re printing money. More debt is available. But amateurs are playing in it.”
This is what that 'bubble' looks like...
Moody’s/RCA Commercial Property Price Indices’ national all-property composite gained 2.6 percent in June, the last month for which data is available, to a level almost double the measure’s last trough, in January 2010.
But then again - what does a billionaire real estate investor know... "probably nothing"