CANNES, France, March 13 (Reuters) - Goldman Sachs Asset

Management will resume "actively investing" in U.S. commercial

real estate this year because the market is bottoming out, the

co-head of its real estate business said on Wednesday.

"The reason is a combination of interest rates coming down,

we feel like the market is bottoming out, and because we're

starting to see a floor in prices set by buyers who are in the

market," Jim Garman, GSAM's co-Head of Real Estate told Reuters

in an interview at the MIPIM property conference.

Garman said GSAM had begun to deploy more cash in real

estate in Europe and Japan over the past three months, without

quantifying its investment. The underlying strength of the U.S.

economy should support a rebound in the market there too,

although he cautioned about the speed of a recovery.

"We don't think its going to be a very sharp V-shaped

recovery - we think we're going to bump along the bottom for a

while, as a lot of these over-levered situations in the asset

class get worked through," he said.