Survey: 2010 Will be Buyers’ Market for Commercial Real Estate

2010-01-07

All indications are that 2010 will be the year for a buyers' market in commercial real estate.  The recent Emerging Trends in Real Estate 2010 study released by Pricewaterhouse Coopers LLP and the Urban Land Institute (ULI), says commercial real estate players predict vacancies to continue to increase and rents to decrease across all property sectors before the market hits bottom in 2010. The consensus is that property values will ultimately drop 40 to 50 percent on average from 2007 market peaks, making 2010 and 2011 the opportune time for investors to buy at or near cyclical lows. The survey data also indicates that investors believe capital will slowly begin to flow back into commercial real estate markets by the end of 2010, led by all-cash investors. The research from Real Capital Analytics, Inc. estimates that commercial real estate loans in default, foreclosure, or bankruptcy now total roughly $130 billion.  By being selective on offers from both distressed sellers and banks that are clearing out bad loans and real estate owned portfolios, investors will score bargains on premium properties, according to the study. ...read more Abal Auction Real Estate News/Press Releases