Commercial property rents in the US
are expected to reach their former peak levels by 2015, a recent forecast has suggested. Growth in warehouse and office rates is expected to drive the rebound, RREEF said.
The organisation added that rates in the two sub-markets will surpass the apartment sector within two years, Bloomberg reported.
It follows news that US commercial property
prices fell 4.3 per cent from a year earlier in January, Moody's/REAL Commercial Property Price Index showed. It was the second straight monthly decline.
However, buildings in New York, San Francisco, Boston, San Diego and San Jose will see the strongest growth after office rents fell 4.9 per cent nationally last year, Alan Billingsley, head of research for RREEF, told the news provider.
"Net operating income is still moving downward, but when rent growth starts, it really takes off," Mr Billingsley said.
He added that real estate found in technology-driven markets, such as Seattle and Austin are expected to be among the best investments.
- Monday 28 March 2011