Owners deciding to keep commercial property off the US market

The decision of property owners in the US to keep real estate off the market has had a profound effect on the level of sales in the country, new data has shown.

According to statistics released by Real Capital Analytics, the amount of commercial property sold in the first half of 2010 stood at just a quarter of the average seen in the past six years.

A lack of available real estate has been cited as the primary reason for the low level of deals, with frustration beginning to mount among prospective buyers.

"When something does come to market, that lack of supply is causing almost a feeding frenzy," Alan Kava, co-head of Goldman Sachs Group's Real Estate Principal Investment Area in New York, said.

"People have real estate funds that are not on an infinite time line, they need to put capital [in] to work."

However, the residential sector is faring better, with a surplus of foreclosed homes currently selling for up to 27 per cent less than other real estate.

The latest figures from RealtyTrac show that distressed sales now account for at least a third of all Florida property purchases.

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