Hope Is In The Air!
"Declining values, debt maturity, tight credit access, and stalled construction may continue to plague commercial real estate for the remainder of 2010, but optimistic investors are seeing opportunity in this difficult market via the purchase of distressed assets, according to Deloitte’s Perspectives on Real Estate: Uncovering Opportunity in a Distressed Market, released Monday.
The report said some real estate asset classes are expected to bottom out and then start to recover in 2010, but ultimately, it will likely take improvements in employment figures and consumer spending to drive demand for office, retail, industrial, multifamily and hospitality space and produce a corresponding uptick in occupancy and effective rents.
With a possible recovery on the horizon, now is the time to invest. For well-capitalized players—whether they are existing REITS or funds that have been raised to take advantage of the depressed conditions that exist today—there are significant, broad-based opportunities to make distressed asset acquisitions, Deloitte said. Thus far, surprisingly few properties have come to market. But for those that have, competition among prospective buyers has been fierce."
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