follow me on Twitter

    Mikael Blog: Real Estate Tech News & Discussions

    Real Estate Blogs

    Wednesday, August 13, 2008

    Commercial Property Market Update

    By JESSICA HOLZER August 13, 2008

    WASHINGTON -- Real-estate executives' outlook for the commercial-real-estate market has deteriorated as hopes dim for improvement during the next year, according to a Real Estate Roundtable survey.
    More than 80 out of 100 senior industry executives asked said the general market has worsened during the last 12 months.
    The share of executives expecting the market to bounce back even slightly in the coming year dropped to 53% in July from 63% in April.
    Respondents cited the credit squeeze and the weakening economy as the chief culprits hurting the commercial-real-estate market. Nearly 90% of respondents predicted that commercial-real-estate prices will drop or stay flat during the next 12 months.
    "Even though loan delinquencies to the sector are very low, the ongoing lack of credit for real estate has led to weaker property values and has stalled transactions," Roundtable President and CEO Jeffrey D. DeBoer said.
    More than 80% of the executives surveyed said the availability of credit was "much worse" than it was a year earlier, although roughly two-thirds expect the debt market to improve during the coming year.
    Respondents were more optimistic about the equity market, with roughly half judging the availability of equity financing as "somewhat worse" than a year ago.
    However, more than half surveyed said that overall conditions in the real-estate market would be "somewhat better" over the next year.
    The survey was conducted during the third week of July.

    Chris' comments: Industry insiders seem to be telling us that the market has stalled but not so severely that a major recession is in the works. Rents/revenue seem to be holding up and even though CAP Rates are increasing, this in itself is not a bad development. According to insiders, it appears that a period of sluggishness over the next 12 months is in the offing. Not great but not too bad considering the residential market environment and asset price declines.


    Unknown said...

    Thanks for sharing this amazing information

    Laura Bush said...

    J'ai lu votre blog c'est très utile pour nous. Je ne pouvais pas trouver ce type de connaissances sur cette question avant. Je voudrais remercier d'avoir partagé cet article ici. Location de salles de réunion Belgique

    portraitlove said...

    single christian women
    Dean, a couple of years later met his beloved wife Karen here on SGS and they were united in matrimony on September of 2006. The entire staff at Sovereign Grace Singles are deeply committed believers who are passionate about serving the Reformed Christian Community.

    portraitlove said...

    Reduce turnaround times from days to minutes by automating mundane human activities and streamline your business processes with robots acting like humans.

    rockiespropertygroup said...

    I read this article, it is really informative one. Your way of writing and making things clear is very impressive. Thanking you for such an informative article.Commercial real estate appraisals in Alberta

    portraitlove said...

    vegastop dogs
    The Platinum High End NCABB Supreme Model move previously only available to Robs Client base. This Limited Level Investment is for those looking to step out.

    ROCKIN THE HOUSE said...

    This is exceptionally instructive substance and composed well for a change. It's pleasant to see that a few people still see how to compose a quality post. Nevada luxury real estates

    devakon said...

    Wow, What an Excellent post. I really found this too much information. It is what I was searching for. I would like to suggest you that please keep sharing such type of info. commercial building project management Melbourne

    PropertyInTouch said...

    Clearly, It is an engaging article for us which you have provided here about property. This is a great resource to enhance knowledge about it. Thank you. property in malaysia for sale

    dkg said...

    Great work! I am totally impressed with your work. I got some amazing ideas from your article. Thanks and keep sharing. Sproat Lake Homes For Sale

    Anonymous said...

    Great survey. I'm sure you're getting a great response. hausverwalter duisburg

    Here and Now 365 Ltd said...

    This information is so useful and informative which you have shared here. It is beneficial for beginners to develop their knowledge. It is very gainful information. Thanks for share it.Multicultural Marketing Agency

    portraitlove said...

    We are a team of seasoned technology enthusiasts with over 15 years of experience, who are capable of envisioning different solutions to one problem and come together on the most efficient one. Our sincerity, passion and professionalism is what defines us as a company. We are bound with strong ethical values which are the true essence of our business.