According to a report from PricewaterhouseCooper, real estate investors are feeling good – or at least relatively better – about the state of the market in 2011. Commercial real estate investors are particularly optimistic about their market sector thanks to a decrease in jobless claims and rising business and consumer confidence, according to the “PwC Real Estate Barometer,” a system for analyzing historical and forecast commercial real estate data. While multifamily housing – not surprisingly – tops the recovery list according to the barometer, the office sector is also heading for a recovery by the end of 2011, the report said. Only retail, hindered by inconsistent consumer spending and fears of inflation, will delay recovery until sometime in 2012, say experts, and this shadow does not seem to be dampening real estate investors’ enthusiasm for the commercial market as a whole. In fact, investors are continuing to show marked interest in retail properties as other analysts predict that “well-traveled shopping areas will begin to stabilize this year” and investors hope to get in on good retail deals before the recovery phase begins in earnest. Furthermore, the luxury sector of the retail market is already in recovery, with people in this sector who have money “not afraid to spend it,” as George Whalin, president of the Retail Management Consultants in Carlsbad, CA, describes it. The retail sector is still recovering ahead of schedule anyway, as last year recovery was not projected until 2013 or even 2016 by some economists.
What sector of commercial real estate do you find attractive in today’s market?
Thank you for reading the Bryan Ellis Real Estate Letter!
Your comments and questions are welcomed below.