The commercial real estate sector is enjoying a run of good fortune of late, with stronger leasing volumes, more property-management work and increased investment sales, it has been claimed.
Investors.com has reported that the sector is beginning to bounce back following a turbulent two years. Many companies have been looking to consolidate and optimise leased space, the news provider said.
"We're in an early recovery" in commercial real estate, Brett White, CB Richard Ellis' chief executive officer, explained. "After the recovery gets going and the economy gets its steam you move into a long-term expansion," he said.
Expansion is when "every quarter is positive in job growth and GDP", while recoveries "are fragile", the expert added.
Meanwhile, writing for the Scotsman, Rachel Aird, investment director of real estate at Scottish Widows Investment Partnership, also claimed that commercial real estate investors have been enjoying a return of market confidence
. She explained that negative sentiment had driven prices down dramatically, but thanks to a rebound in property values investors are increasingly being drawn back to the sector.
- Saturday 25 September 2010