04/09/2010

3 Out of 4 Executives Expect Commercial Property Values and Rents to Keep Falling in 2010

Increased unemployment has resulted in less demand for office space, reduced rents, and an overall decline in commercial property values

 

Roughly three-quarters of executives expect commercial property values (76 percent) and asking rents (73 percent) to continue to fall in 2010, according to a survey conducted by Deloitte.

 

About three-quarters (74 percent) of executives expect interest rates to rise in 2010; 48 percent expect rates to increase by 50 basis points or more.

 

Almost two-thirds (63 percent) of executives surveyed predict that a full recovery of the market will require 2 to 3 years, while 29 percent believe a full recovery will take 4 years or longer. Only 8 percent anticipate a full recovery within the next year.

 

“The commercial real estate market continues to be adversely affected by one of the deepest recessions in decades,” says E.J. Huntley, principal at Deloitte Financial Advisory Services LLP and national leader of the real estate consulting practice. “Increased unemployment has resulted in less demand for office space, reduced rents, and an overall decline in commercial property values.”

 


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Visit our website today to learn about the design flexibility of a Morton building and the endless possibilities of partnering with our designBUILD team.


Wood construction is both cost and energy efficient. Check out Morton Buildings and our designBUILD team online today to discover all the benefits of post-frame construction.


When choosing a metal-clad building for your next construction project, consider Morton Buildings, Inc., and their designBUILD team, we’ll make your dream a reality.

Bluebeam® Revu® simplifies digital facilities document management from design review to leveraging as-builts, maintenance manuals and O&Ms submittals.

We Can Help You Reduce Energy by 30%

Our mission is to help our customers manage their buildings' energy costs, improve reliability, and enhance performance while having a positive impact on the environment.
CLICK HERE to find out how.


 
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