What is looking like a jobless recovery will spell a tepid economic rebound that will not fill buildings. The shakeout period for commercial real estate is now expected to extend several years. Unlike the last crisis, in which overbuilding affected new product, this time around vacancies are affecting the entire built environment, new and old alike. Owners without long-term leases to bridge the downturn will have a hard time surviving 2010.
With the current undersupply of available joint venture equity capital, operators need to speak with the full array of potential equity investors, as well as with their existing joint venture equity partners.
Despite some initial signs of a return to stability, conditions in the U.S. commercial real estate capital markets are as severe as ever—and likely to remain that way.
Yields are stabilizing in certain european office markets, but investor caution continues, particularly in eastern europe.
As we enter the second decade of the 21st century, it’s clear that the land use industry globalization so prevalent during the past ten years will become even more expansive in the years ahead.