Corporate Real Estate Outlook: Opportunities and Risks in a Tenant's Market
BY: Michelle Cammarata
According to many economists, the recession is over, but the bottom is still a long way off in commercial real estate. Job losses have exceeded the increase in vacancy rates, meaning more vacancy is yet to come. (CoStar predicts national vacancy will go from 13 percent to 15 percent over the next 24 months.) Real estate is a lagging indicator, and it seems likely that true rent recovery will not occur before 2012. Full market recovery is not expected until employment reaches its pre-recession level, probably not before 2013. more....