Buyers are looking for lower prices to compensate for higher perceived risk, but sellers are reluctant to discount assets in the face of very
healthy real estate fundamentals.
Despite the broader economic challenges, commercial
real estate fundamentals remain solid in part because developers have scaled back on new projects, limiting the amount of new supply.
Deteriorating real estate fundamentals across several property types, particularly in the office sector, coupled with a lack of a federal backstop for terrorism insurance have put a halt on deal making.
Yield - seeking investors are finding more and more value add opportunities where properties with otherwise
good real estate fundamentals couldn't remain operationally competitive under their existing management structure.
«Compared to six months ago, real estate researchers are predicting slower economic growth,
slipping real estate fundamentals and lower returns from both the public and the private markets,» he said.
Industry experts have varying opinions on the cause for that underperformance in a market where
real estate fundamentals across most property types have continued to improve.
NREI: In the current market, in
which real estate fundamentals remain soft in many property sectors but investment activity is high, what issues do your members face?
The sector's outstanding growth came as a result of «dramatic acceleration in
real estate fundamentals coming off all - time low valuations,» said Bob Steers, co-portfolio manager of Cohen & Steers Capital Management's Realty Shares fund.
While real estate fundamentals are only now beginning to recover in the wake of the Great Recession, it's clear that borrowing expanded in 2010 and is expected to grow in breadth and depth in 2011.
There are no absolutes in the lending arena, however, and some of the concessions could begin to wane
if real estate fundamentals don't show significant signs of improvement in the near term.
This low supply is a unique feature of this real estate recovery (as opposed to all past recoveries) and has helped to bolster fundamentals and is behind the fairly quick recovery in commercial
real estate fundamentals despite anemic demand factors.
In the face of
eroding real estate fundamentals, mass layoffs and the looming threat of war in the Middle East, there are few who believe that the REIT market will remain unscathed.
As Jerry Doctrow, managing director at Legg Mason, says: «For real estate investors who understand this business, which is really subject to government policies, it's a good place to invest, especially if they are worried
about real estate fundamentals deteriorating.
According to Peter Korpacz, director of the global strategic real estate research group of PricewaterhouseCoopers, strong
real estate fundamentals combined with a lack of overbuilding have set the stage for the industry to overcome economic weakness.
Staying focused
on real estate fundamentals, Ted continues to add value for his clients, who appreciate his keen market insights and strong work ethic.
In an environment of
improving real estate fundamentals — i.e., rising rents, increasing occupancies, low supply, increasing availability of low - cost debt, and expanding investor interest — we should see more capital coming to commercial real estate, resulting in a tighter spread.
The challenge is finding a partner that has institutional - quality deals — which generally means a property with
strong real estate fundamentals that would capture the attention of large national or international investors, such as insurance companies, private equity firms or real estate investment trusts.
«A growing U.S. economy, coupled with
healthy real estate fundamentals and strong access to financing and capital, make real estate leaders optimistic about a continued «boom» in the U.S. market.»
«What is interesting to note is that
real estate fundamentals remain soft, although it appears as though operating conditions are no longer deteriorating,» Sakwa wrote in his third - quarter REIT recap.
They cite several factors for the dip in the volume of originations, including
deteriorating real estate fundamentals, a slow sales transaction environment and the lack of terrorism insurance.
What property has the
best real estate fundamentals, good rent rolls, high occupancies and expected low turnover rates for the next three to five years.
We believe that both mortgage and CMBS spreads will continue to drift downward, albeit at a slow pace,
as real estate fundamentals continue to stabilize over the next 12 months.
With the strengthening U.S. economy helping to ease trepidation over the direction of
commercial real estate fundamentals, industrial investors are in the market for the outsized returns that can come from increased...
Fifty - two percent of real estate executives polled believe that improving
real estate fundamentals in 2017 will be the biggest driver of their company's revenue growth, while 91 % of investors are bullish on access to equity capital, with 25 % expecting an improvement in 2017 and two - thirds believing that the positive trend will remain the same.
The macroeconomic backdrop for commercial
real estate fundamentals is sound, fueled by job growth and positive consumer sentiment, real estate operating fundamentals have continued to improve, and supply has been limited in most markets and asset classes.
Real estate fundamentals are warming — but only oh - so - slightly.
Thor Urbana Capital is a leading real estate investment and development company based in Mexico City, aimed to capitalize on Mexico's strong economic growth and
real estate fundamentals.
What's more, there's a growing disconnect between resale prices and
real estate fundamentals (rental prices, incomes, and inflation - adjusted house prices).
«Our conclusion is that
real estate fundamentals were getting a little bit out of whack,» Nessen says.