Commercial real estate should hit bottom in 2010 – 2011

by charlotterose on November 6, 2009

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“NEW YORK (Reuters) – The U.S. commercial real estate market, slammed by the credit squeeze and recession, is likely to hit bottom in 2010, according to a survey of industry investors, developers, lenders and consultants.

Commercial real estate values will fall 40 percent, on average, from their peaks in mid-2007, and up to 50 percent in some sectors, according to the 2010 edition of Emerging Trends in Real Estate, released on Thursday by the Urban Land Institute and PricewaterhouseCoopers LLP.” By Nick Zieminski © Thomson Reuters 2009 All rights reserved

Most hard hit will be retail and offices. Which is no surprise with the way the economy is going. The one sector of commercial that won’t get hit too hard is apartment buildings and that’s because there is a large population of young people and people who can’t afford homes anymore, renting now.

Basically, commercial is going through the same cycle that residential properties have already been going through. There’s a lot of loans out there that will be reseting in the next few months, thus a lot of property owners will no longer be able to keep up with the payments. Investors are ready to jump with their cash. Everyone is just waiting for it to pop and when it does there will be a tremendous amount of good deals out there. Just watch.

Article by Charlotte Rose

A California girl raised in Nor. Cal. Travelled South the summer of 1991 and never looked back. My background is in Architecture, Design, Branding, 3D computer graphics for gaming and movies. Evolving over time into several careers including a stint as a sushi chef. I’ve been a swimmer, bicyclist, and vaulter (yeah, really vaulting is gymnastics on a moving horse). Professionally, I’m now a Realtor and help clients create wealth via investing into commercial and multi-residential unit properties. To guide others from their first investment to complete wealth is such a high for me. Love making others dreams come true. I also work as a natural health coach, I value each opportunity to help others create their ultimate self. Life is about passion and one must act on it as it can be rare. Being a Virgo, I'm down to earth and a bit of a perfectionist. Very independent, compassionate. Must always have animals in my life. Love exploring, travelling, trying new things, ocean, the outdoors, dancing, great music, playing hard, working hard, creativity, and having fun. I always go one step above what's expected of me. Love life!!!

Charlotte has written 15 articles on this blog.