U.S. commercial real estate investors believe occupancy and rental rates in most U.S markets will stay soft in 2012 and the competition to buy property in a handful of promising areas could get dangerously hot according to an influential survey released on Wednesday to almost three years after the U.S economy hit bottom a recovery seems to be nearly stalled.
There is no driver of jobs to create demand for office space in boost consumer spending at malls and shopping centers, and raise demand for warehouses to store goods and the "Tenants hold all the cards and instead of expanding, some shrink their space requirement," one investor said during an interview compiled for the Emerging Trends in Real Estate 2012 survey.
Report by Pricewaterhouse Coopers and the Urban Land Institute, involves a survey of 950 of the most influential U.S. real estate investors and executives in order to gauge outlook for next year in the investors risk overpaying top properties in leading markets such as New York, Washington and San Francisco and certain secondary cities such as Austin.
Even as loans and equity become more readily available to finance purchases next year, investors are wise not to overpay or use too much borrowed money, the survey said that instead they are advised to chose projects that meet their realistic cash flow projections investors who buy well-leased stable buildings are expected to reap single-digit income returns, according to the survey.
There is no driver of jobs to create demand for office space in boost consumer spending at malls and shopping centers, and raise demand for warehouses to store goods and the "Tenants hold all the cards and instead of expanding, some shrink their space requirement," one investor said during an interview compiled for the Emerging Trends in Real Estate 2012 survey.
Report by Pricewaterhouse Coopers and the Urban Land Institute, involves a survey of 950 of the most influential U.S. real estate investors and executives in order to gauge outlook for next year in the investors risk overpaying top properties in leading markets such as New York, Washington and San Francisco and certain secondary cities such as Austin.
Even as loans and equity become more readily available to finance purchases next year, investors are wise not to overpay or use too much borrowed money, the survey said that instead they are advised to chose projects that meet their realistic cash flow projections investors who buy well-leased stable buildings are expected to reap single-digit income returns, according to the survey.
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