The Washington Post reported that the current credit crunch may have a bright side: That of creating opportunities for buyers who don’t need to borrow cash to buy commercial property but were unable to buy when a burgeoning real estate market drove up prices through using low cost loans to buy and flip properties for quick profits.

Kept out of big deals by private equity firms drive up prices, publicly traded real estate investment trusts are on the move again, especially in the Washington, D.C. area. Two with major holdings in the Washington area have said they will work to increase real estate buys in the next few months.

A spokesperson for one, the Washington Real Estate Investment Trust, said that his company considers the Washington area’s commercial real estate market as strong enough to come through the current recession in good shape. Regardless of debt market drawbacks, the firm’s portfolio, which harbors only properties in the Washington area, was able to complete its $58 million dollar sale of the Maryland Trade Center in Greenbelt.

Boston Properties, another REIT with extensive Washington area holdings, recently announced an increase in its funds from operations were up $3.3 million from the third quarter of last year. The company plans to develop the old George Washington Hospital site and recently inked an agreement to sell several buildings located in the Washington suburbs for $125 million. A Boston spokesperson said the firm expects the sales to close before Thanksgiving.

Boston Properties also continues to develop the second phase of Reston Town Center, where the firm has pre-leased 85% of the construction for the project.

The company currently enjoys a 97.9% occupancy rate in its Washington area holdings, making this market its second-strongest after midtown Manhattan.

Tags: credit crunch, real estate investment, REITs, Washington DC real estate

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