PE firms shift focus from German homes to offices

[BERLIN] Blackstone Group LP, the private-equity firm that cashed in on Germany's booming housing market last year, plans to join the ranks of investors shifting money into the country's commercial properties, where financially strapped owners are under pressure to make deals.

Investors from insurers and pension funds to buyout firms last year spent the most on German offices, stores and warehouses since 2007, broker Savills plc estimates. Blackstone and its competitors want to join the acquisition spree even as values increase.

"Residential is getting too expensive and they're using the peak to liquidate," said Fab…