2008 Commercial Real Estate Prediction

By: steve, January 2nd, 2008

Grubb & Ellis Predicts Sluggish Economy in 2008 Will Be Enough to Keep Demand for Commercial Real Estate Steady

Grubb & Ellis Company – a leading real estate services and investment management firm– today released its 2008 Global Real Estate Forecast, which indicates that U.S. economic growth, which is expected to be sluggish this year, should be enough to keep commercial real estate leasing markets stable, although somewhat less exuberant than 2007.

Buyers and sellers will begin to reach some consensus regarding post-credit-squeeze property pricing levels, keeping real estate investment transactions flowing, although down from the record levels of 2007.

According to the report, buyers should return to the investment market in greater numbers this year as all-cash and low-leverage buyers including institutions, REITs and foreign investors step up with purchases. Nonetheless, transaction volume is expected to fall short of the 2007 record, perhaps by as much as 25 percent.

Capitalization rates are likely to increase up to 100 basis points with Class A properties in supply-constrained coastal markets anchoring the low end of that range and Class B and C properties in secondary and tertiary markets at the high end.

GRUBB & ELLIS INVESTMENT OPPORTUNITY MONITOR 

U.S. OFFICE MARKET STRENGTH FORECASTTop 10 Markets 2008 - 2012* 

  1. Los Angeles
  2. Houston
  3. Washington, D.C
  4. Denver
  5. Seattle
  6. Philadelphia
  7. Oakland/East Bay                       

  8. Portland, Ore.

  9. Raleigh-Durham, N.C.

  10. San Francisco                      

*Markets were ranked against 14 property, economic and demographic variables. 

U.S. INDUSTRIAL MARKET STRENGTH FORECASTTop 10 Markets 2008 - 2012* 

  1. Los Angeles
  2. Houston
  3. Atlanta
  4. Inland Empire, Calif.
  5. Oakland/East Bay, Calif.
  6. Phoenix
  7. Miami-Dade County
  8. Dallas/Fort Worth
  9. Chicago
  10. Seattle

*Markets were ranked against 14 property, economic and demographic variables. 

U.S. RETAIL MARKET STRENGTH FORECASTTop 10 Markets 2008 - 2012* 

  1. Los Angeles

  2. Dallas/Fort Worth

  3. Atlanta

  4. Houston

  5. Philadelphia

  6. Orange County, Calif.

  7. San Diego

  8. Chicago

  9.  Portland, Ore.                      

*Markets were ranked against 15 property, economic and demographic variables. 

SOURCE Grubb & Ellis Companyhttp://www.grubb-ellis.comCopyright © 2008 PR Newswire. All rights reserved 

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