2011 to see widened commercial real estate investment

While commercial real estate deals this year have been subdued in most areas, a survey of investors by PricewaterhouseCoopers finds that interest in secondary markets may return next year.

The report says that buyers are now willing to take on slightly more risk in their portfolios as they see continued signs of a recovery, which should fuel interest in many non-core properties across the country.

"This time last year investors were solely focused on 'treasures' or 'traumas', properties that were either top-notch quality or significantly discounted due to sellers in distress," said Mitch Roschelle, partner, U.S. real estate advisory practice leader, at PwC. "Now, many of them are looking to widen their investment parameters."

The report noted that the strongest improvements wold likely be seen in the apartment and warehouse sectors of the market, while growth would be slower in office and retail markets.

Other reports have pointed to Houston properties to be among the strongest in the country. In a recent BoyarMiller forum, researchers said that commercial prices in Houston would remain level, while other Texas markets saw declines.