Courtesy of PropertyWire.com
Most of the major commercial real estate sectors in the United States show gradually improving fundamentals, according to the latest property forecast report from the National Association of Realtors.
They are easily absorbing the relatively small amount of new space that is coming online, with a full recovery already in the multifamily market, it says, as market slowly build momentum.
Job creation is the key to increasing demand in the commercial real estate sectors, according to Lawrence Yun, NAR chief economist. ‘The economy is expected to grow 2.5% next year, and with modest job creation, assuming there is no fiscal cliff, the demand for commercial space will gradually rise. The greatest friction that remains is a tight credit environment, notably for smaller properties,’ he explained. Read more at PropertyWire.com
CMBS, Investment Transaction Volume Likely To Jump Sharply As Economy Gains Steam
By Randyl Drummer
March 28, 2012: Even among the stream of positive real estate surveys and forecasts recently, the one issued this week by the Urban Land Institute (ULI) stands out. Expressing the consensus views of 38 leading real estate economists and analysts from across the U.S., ULI reported commercial real estate market conditions and the overall economy is expected to see broad improvement over at least the next two years as the recovery cycle kicks into overdrive and shifts into growth mode.
In other key highlights. the ULI forecast expects CRE transaction volume to increase by nearly 50% over the next three years, while issuance of commercial mortgage-backed securities (CMBS) is expected to more than double. Institutional real estate and real estate investment trusts (REITs) are expected to provide returns ranging from 8.5% to 11% annually through 2014.
Courtesy of Lee Whistler, Realtor for Century 21 M&M Clovis