US Commercial Property Sector is Recovering

Growing investor confidence in commercial real estate market in the US has been highlighted with the results of a recent survey. The PricewaterhouseCoopers (PwC) Real Estate Investor Survey has suggested that many buyers believe that the sector is slowly recovering....

Growing investor confidence in commercial real estate market in the US has been highlighted with the results of a recent survey. The PricewaterhouseCoopers (PwC) Real Estate Investor Survey has suggested that many buyers believe that the sector is slowly recovering.

Tracking the expectations of survey respondents for the future performance of the office, retail, industrial and multi-family property sectors from 2011 to 2014, PwC said that full recovery is being hampered by the sluggish US economy.

However, Mitch Roschelle, partner and PwC US real estate advisory practice leader, noted that as investors become more confident about the recovery they are eager to get deals done.

"This bodes well for the industry as the volume of capital chasing deals is expected to increase in all sectors as investors work to deploy capital before interest rates rise, overall cap rates increase and the industry shifts more in favour of sellers," she added.

IPD's recently released US Annual Property Index revealed that real estate in the country has delivered its third strongest annual returns of the last decade during 2010, at 14.2 per cent.

- Friday 25 March 2011

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