PaintSquare.com


The First Word in Protective & Marine Coatings

A Product of Technology Publishing / PaintSquare
JPCL | PaintSquare News | Durability + Design | Paint BidTracker

Register Now for D+D 2014

Paint and Coatings Industry News

Main News Page


Commercial Property Declines Easing

Friday, December 18, 2009

Comment | More

Declines across the nation's commercial real estate sectors are easing slightly as 2010 approaches, a new study shows.

Despite the positive signs, however, growth across the commercial property markets is expected to remain sluggish through at least the first quarter of 2010, followed by a potentially meaningful recovery during the second half of the year.

Those are among the conclusions in the latest edition of the Investment Trends Quarterly report, produced jointly by the CCIM Institute and Real Estate Research Corporation (RERC).

Richard Juge, CCIM, the 2010 president of the CCIM Institute, acknowledged the “stress” and “distress” of 2009. "However,” he added, “we also see signs of improvement, and while the path ahead is rocky and will be difficult to navigate for many, it also provides some extraordinary buying and leasing opportunities.”

Overall, the report notes several key trends:

• Transaction volume is increasing on a quarter-to-quarter basis for some property types, although it is still declining overall on a 12-month trailing basis.

• Third-quarter 2009 volume increases are reported in the office, retail, apartment and hotel sectors.

• Industrial sector volume was the only property type to see quarter-to-quarter volume decline.

In addition, while 12-month trailing prices declined slightly across the board during the third quarter, the report notes that pricing is beginning to inch up for several property types on a quarter-to-quarter basis.

Apartments Faring Best

The Investment Trends Quarterly captures market-specific data to determine the relative health of each of the major commercial property sectors, using a 1 to 10 rating system to grade current investment conditions, with 10 at the high end of the scale.

During the third quarter, apartments fared the best among commercial property types with a 5.5 rating, which was up from the second quarter. Industrial ranked second among survey respondents with a 4.3 rating. This was unchanged from the previous quarter.

The retail and office sectors tied in the third quarter with a rating of 3.8. For retail, the rating was up from 3.4 in the second quarter, while the office sector also increased from 3.5 during the same period. The hotel sector ranked at the bottom of the survey with a 3.6 rating, but this was an improvement over the 3.4 rating in the second quarter.

Looking Ahead: 2010

Here are a few trends to watch as the industry enters 2010:

• Credit will remain tight.

• Bank foreclosures will increase as more commercial loans come due.

• Consumer spending is expected to remain relatively sluggish, despite the upcoming holiday season.

• Vacancy rates for all major commercial real estate sectors will continue to increase throughout most of 2010.

• Capitalization rates will move slightly.

• Commercial property sale prices and rents will remain mostly flat or decline further.

• Commercial real estate construction will remain slow.

• Sales volume and transactions will begin to increase.

• More entrepreneurs and opportunistic funds will be looking more closely at real estate.

   

Tagged categories: Market research

Comment Join the Conversation:

Sign in to our community to add your comments.

ITW Binks
Built for Tough Jobs

From Epoxies to Urethanes to other high solid coatings, the new Binks Airless 75 delivers a great finish using an ergonomic design. Visit binks.com for more information.


JPCL Europe
Special EMEA edition!

Now, the publisher of JPCL offers essential news and knowledge for protective and marine coatings professionals in Europe, the Middle East and Africa: www.jpcleurope.com


U.S. Zinc

Combat deterioration and corrosion with our zinc dust in your paints and coatings. U.S. Zinc – Helping the world work™


SAFE Systems, Inc.
Portable Blast &
Recovery Equipment

Trailer or skid mounted blast and recovery equipment. Systems designed for maximum versatility, environmental compliance
and overall cost savings.
Call 1-800-634-7278


KTA-Tator, Inc. - Corporate Office
KTA Online
Instrument Catalog

• Any Manufacturer
• Any Instrument
• Any Time
Visit www.ktagage.com
Or call 800-582-4243


LS Industries
LS Blasters: Optimum Steel Cleaning Efficiency

Simplify surface prep with the precise shot control of LS Blasters. Our blast technology delivers optimum coverage and finish. 800-533-8008


HoldTight Solutions Inc.
NO FLASH RUST -
NO CONTAMINANTS

Our HoldTight®102 salt remover & flash rush inhibitor prevents flash rust by removing surface contaminants.
Contact us for your nearest distributor. (800) 319.8802 sales@holdtight.com

 
 
 
Technology Publishing

The Technology Publishing Network

The Journal of Protective Coatings & Linings (JPCL) PaintSquare
Durability + Design Paint BidTracker JPCL Europe

 
EXPLORE:      JPCL   |   PaintSquare News   |   Interact   |   Buying Guides   |   Webinars   |   Resources   |   Classifieds
REGISTER AND SUBSCRIBE:      Free PaintSquare Registration   |   Subscribe to JPCL   |   Subscribe to PaintSquare News
MORE:      About PaintSquare.com   |   Privacy policy   |   Terms & conditions   |   Site Map   |   Search   |   Contact Us
 

© Copyright 2000-2014, Technology Publishing / PaintSquare, All rights reserved
2100 Wharton Street, Suite 310, Pittsburgh PA 15203-1951; Tel 1-412-431-8300; Fax 1-412-431-5428; E-mail webmaster@paintsquare.com