The Same Tune
Articles like this from the StarTrib are nothing new. This tune has been the same for the past few years.
Despite hopes that commercial real estate will break out of its protracted slump, local experts say 2012 will be much like last year.
The consensus is that we’re in for a long, grind-it-out recovery with only a few bright spots. Recent signs of job growth are encouraging, but there likely won’t be enough hiring to restore demand for office space to pre-recession levels.
Large employers have figured out how to get by with less office space. And cash-strapped consumers have continued to limit their spending, affecting the growth of retail centers, and thus the rents landlords can charge tenants.
The fortunes of the various types of commercial real estate — office, industrial, retail and multifamily — can best be measured by the amount of investor interest they’re attracting. According to an analysis by PriceWaterhouseCoopers and the Urban Land Institute, the winners this year will be high-profile downtown office buildings and income-producing warehouses near transportation hubs, as well as full-service hotels and grocery-anchored neighborhood shopping centers.
flickr photo cred: crashmaster007
