Experts continue to show optimism in their predictions for the future of both housing and commercial real estate, according to a nationwide survey released last week.
The study, conducted in March and analyzing 2009 through 2015, showed significant improvement in the predictions of 38 industry economists and analysts for commercial real estate activity when compared to the last survey conducted September 2012. The studies were done by the Urban Land Institute, a nonprofit education and research institute with 30,000 members from all aspects of land use and development, and Ernst & Young, a global company in assurance, tax, transaction and advisory services.
While the past four years have been marked by a consistent lag in the commercial real estate sector, we are beginning to see what looks like a sustainable recovery. The steady depreciation, partly caused by cross-sector economic woes, has kept pricing down, while at the same time, a burst of growth has companies seeking new or expanded homes.
While many will attempt to play the trend through financing options or through asset purchases, at our firm, my partner Patrick McVeigh and I believe real estate infrastructure investments focused on energy and carbon efficiency represent a better, less obvious, and more powerful growth opportunity. There are two main rationales guiding this direction: