With corporate profits increasing, commercial real estate brokers, developers, architects, and other industry insiders believe their fortunes will take a turn for the better during the latter half of this year, reports the Urban Land Institute.Â
According to the think tank's poll, market participants expect rising values for all segments. Apartments are expected to lead the charge, while the positive signs in U.S.- based manufacturing are expected to boost warehouse distribution centers. Though hotels placed third, the sector had the biggest gain overall in the annual survey as corporate and individual travel grew.
The growth in commercial property values is projected to be greatest in Boston and San Francisco. Buyer interest is especially intense in industrial properties where job gains, demand from renters and rising rents are expected, such as in Austin, Texas, and Silicon Valley.
However, the forecast is gloomy for the nation's capital, where survey participants worry federal budget cuts could curb demand for offices and other real estate.
Source: "Commercial Property Professionals Expect Values to Climb," Los Angeles Times (June 3, 2010)