2008 Real Estate Capital Market Industry Outlook
Top ten issues
While the credit crunch and economic uncertainty have caused investor anxiety and tighter lending standards, commercial real estate (CRE) remains comparatively attractive with solid underlying fundamentals, plentiful capital and sustained allocations. Deloitte recently released its 2008 capital markets Top Ten Issues report. The report provides insight about commercial real estate market trends, over the short and long term, through a review of critical issues, an examination of the industry’s core fundamentals and an analysis of underlying factors.
Top issues include:
- CRE returns remain enticing, especially as stocks turn volatile
- Recent credit crunch preoccupies markets, including regulators
- Residential real estate continues to drag economy
- Economy still confusing and contradictory
- CRE capital still available, but pausing and shifting
- CRE fundamentals solid; rent increases slow, caps rise
- Domestic real estate investment trusts (REITs) hit the wall, as global REITs gain acceptance
- Global synchronized growth encourages global CRE investment
- Regulatory concerns heighten as markets globalize
- Accounting standards converging
Read the full report attached below.