Perspectives on Real Estate: Uncovering Opportunity in a Distressed Market
Declining real estate values, debt maturity and credit access, and stalled construction activity are some of the issues that challenged real estate owners and operators in 2009, and may continue to do so in 2010 as well. Consequently, these issues have led to the question, “Have real estate values bottomed out?”
If the fledgling transaction volumes that appear in late 2009 continue into early 2010, it should provide some clarity. However, it will likely take improvements in employment figures and consumer spending to drive demand for office, retail, industrial, multi-family, and hospitality space and produce a corresponding uptick in occupancy and effective rents.
So, will 2010 be a positive year for U.S. commercial real estate? The outlook is, at best, uncertain. The sector will likely see continuing pressure on operating results across every asset class. Realistically, however, it will be 2011 or 2012 before the United States sees significant increase in real estate value and a corresponding uptick in the industry as a whole.
To learn more, download the attached report.