ATLANTA. GA (June 20, 2011) – Some areas of the commercial real estate market are showing healthy signs of growth, while others are still struggling — pointing to a very disparate recovery.
The “Commercial Real Estate Show” this week talked with some key commercial real estate players about the state of the market at the annual conference of NAREE, the National Association of Real Estate Editors, in San Antonio, Texas.
John Leary (top right photo), board chair of The Counselors of Real Estate, described the current situation as “a two-tiered marketplace.”
“Strong, well-located assets are trading at prices close to where they were before, whereas assets 20 miles from those locations are not trading or are being held off the market because nobody wants to take that level of loss,” said Leary, president of New Haven, Conn.-based Leary Consulting & Valuation.
Downtowns, in-town neighborhoods and inner-ring suburbs close to the city are capturing interest, while many suburban markets are still a tough sell, said experts. Demographic trends led by the Baby Boomers and Generation Y will continue to fuel demand for walkable, more urban environments.
The multi-family sector is especially hot and money continues to be raised to build new multi-family developments, said experts on the show.
REITs are another bright spot — showing a strong performance on Wall Street and an enviable ease of raising capital. From the REIT perspective, there is a lot of opportunity in the market, said Jay Rickey (lower left photo), publisher and editor of CityBizList.com.
“There is capital flowing into the markets, so there seems to be a lot of optimism from the standpoint of acquisitions and the ability to really capitalize on some of the distress that is out there,” Rickey said.
Leary expects to see this trend of a very disparate recovery continue as different places and segments of the real estate market will rebound at various times in the cycle.
For more Information, contact
Tony Wilbert, Wilbert News Strategies, 404.965.5022, twilbert@wilbertnewsstrategies.com
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