Dr Chandan's Lead Indicator: "The Year in Commercial Real Estate Investment – and the Year Ahead"
Commercial Observer reports: Using figures from Real Capital Analytics’ latest US Capital Trends publication, global chief economist Dr Sam Chandan was able to provide a preliminary wrap-up of commercial real estate trends in 2010 as well as speak to where the market may head in 2011.
Dr Chandan stated that, “Despite disconcertingly weak economic and labor market outcomes, investor optimism about the sector's asset price trajectory has supported more intense bidding for properties, giving traction to the process of price discovery and driving cap rates lower for well-tenanted properties in every sector. Absent a derailment of investor sentiment or a sharp downside deviation from the baseline economic and capital markets outlook, the stage is set for further gains in investment activity across a broader range of the nation's markets in the New Year.”
Counterbalancing these notes of optimism, Dr Chandan qualified his market outlook by remarking that there is the potential for “a decoupling of prices from fundamentals” going into 2011. Macroeconomic challenges will also persist in adding uncertainly to investor decisions, including lackluster job growth, rising interest rates, and lagging consumer and business confidence.
For more on Dr Chandan’s thoughts on the state of the commercial property market as the New Year begins, please see his weekly column in the Commercial Observer.
View the full article on Commercial Observer: Dr Chandan's Lead Indicator: "The Year in Commercial Real Estate Investment – and the Year Ahead"
Articles related to this topic:
Dr Chandan's Lead Indicator: "The Rise and Fall of Default"
Dr Chandan's Lead Indicator : "The Retail Numbers Going Forward"
Dr Chandan's Lead Indicator: "The Tax Compromise and the Erosion of Public Accountability"
Second Monthly Rise in Commercial Property Pricing Index (CPPI)
Despite Increase in Sales, Weak Outlook for US Housing Market (Video)
Dr Chandan's Lead Indicator: "Integrated Mortgage Markets for 2011"
Once Bitten: Investors Tepidly Shopping in Secondary Property Markets
NYTimes Interview with Dr Sam Chandan at RCA
Posted by: Nina Turner