This is a good sign: disastrous US commercial real estate market is finally getting low enough to attract Chinese "bottom feeders."

Of course, there will be plenty of bottom feeders or vultures looking for opportunity, both foreign and domestic.

But cash-flush Chinese are natural buyers.

And you'd hope that the presence of bottom feeders means we're near a bottom.

FT: Market participants warn that the activity represents “bottom-feeding” by opportunistic investors whose strategies could be derailed by rising interest rates. Also, sums are tiny compared with the debts that need refinancing. Nevertheless, the growing interest from investors is a sign of stabilisation, making it less likely that worsening commercial real estate conditions will sink banks and choke off a US recovery.

“We believe the real story is that capital is ready to buy, even though it may not be so visible today,” said Bob Steers, co-chairman of Cohen & Steers, a real estate investment firm.

Recently, state-owned China Investment Corporation has enlisted Cohen & Steers, Angelo Gordon and Morgan Stanley to identify commercial real estate opportunities, people familiar with the matter say.

Read the whole story at FT -- >