- Open Call for Netflix "Mind Hunter" Extras
- Forensic Science Graduate Program ranks number one in the nation on national assessment test scores
- Hot Humid Natsu 2016 Prepares for Fall Con IMAGES
- OP ED: FOIA Exemptions Prevent Some Energy Workers from Proving Claim
- Multiple defendants plead guilty in Charleston to Federal crimes
- Remains Believed to be Missing Woman Found
- Rooster's Hosts Princess Night with Mickey and Minnie Mouse IMAGES
- Flash Flood Watch Covers River Cities
- West Virginia American Water to Host Free Community Water Festival August 6
- UPDATED ... Ghost Hunters , Costumed Heroes Visiting Region IMAGES
NAR: Commercial Real Estate Investors 'Cautiously Optimistic' As the Future Unfolds, According to New Outlook Report
The three organizations have drawn on their respective capabilities to examine the economy, capital markets, and commercial real estate property markets; thoroughly assess and analyze existing research; and offer an objective outlook for commercial real estate for 2014 and beyond.
Findings indicate that although uncertainties remain, the economy is expected to continue to grow slowly and improve modestly in 2014. Capital is flush, and commercial real estate investment has expanded to the secondary and tertiary markets. In addition, the report carefully analyzes and offers a research-based assessment of the office, industrial, apartment, retail, and hotel property sectors. The report also provides an outlook for the three mostly likely economic and investment scenarios for 2014 and beyond.
“We have seen steady if slow progress since the commercial real estate market collapsed in second quarter 2008, and as the future unfolds, we expect that the positive returns for commercial real estate will continue,” said Kenneth Riggs, Jr., president and CEO of RERC. “The value increase from the trough is now about 30 percent, just slightly less than the value lost during the past 6 years. Although returns are likely to be positive in 2014, we forecast them to be a little lower than in 2013, but still a very reasonable approximate average of 8.75 percent.”
“The stabilization that we have seen in the commercial real estate markets during the past year has added greatly to the ‘cautiously optimistic’ outlook we have for the year ahead,” said Matthew Kimmel, principal and U.S. real estate sector leader for Deloitte Transactions and Business Analytics LLP. “Overall, we see the potential for moderate and continued growth in the volume of commercial property transactions and in property prices.”
The commercial real estate recovery is expected to continue throughout 2014, based on slightly stronger economic growth, noted NAR chief economist Lawrence Yun. “We anticipate the economy to grow at an annual rate of approximately 2.6 percent, with about 2.2 million jobs to be added in 2014. More jobs mean increased demand for office, retail, apartment, and other commercial real estate sectors,” Yun said.