The London-based global property survey firm, the Royal Institution of Chartered Surveyors (RICS), is reporting that the pace of distressed commercial real estate properties entering the market generally slowed last quarter. However, its Q110 Global Distressed Property Monitor (download here) finds that the pace is likely to pick up in 70% of surveyed countries, with the US and Ireland leading the way. The monitor asked 466 surveyor offices worldwide about trends in property investments. A distressed property is defined as that which is under a foreclosure order, or advertised for sale. The survey clarifies that such properties are usually sold for under-market value. Nearly 100% of participants believe Ireland will see an uptick in available distressed property investments. The US is second, with nearly 75% of respondents expecting an increase of inventory in Q210. Inventory is expected to fall most in Australia and Hong Kong. “What the results show us, is that in the current low interest rate environment, agents have yet to see the expected increase in distressed commercial properties coming to market that may have been anticipated at this stage of the property cycle,” said RICS senior economist Oliver Gilmartin, and author of the report. Gilmartin clarifies that the survey also finds a growing interest from potential investors in commercial real estate, in the United States in particular, is increasing. He said future survey may be designed to provide more information on this development. “The next stage will be when the banks begin to manage down commercial assets. The response of banks has been measured so far although even so the United States continues to be at the at the top of the list in terms of levels of activity.” The cover story of the June issue of HousingWire takes an in-depth look into the state of commercial real estate in the United States. Subscribe here. Write to Jacob Gaffney.