Grubb & Ellis Company, one of the largest commercial real estate services and investment companies, released its 2010 Real Estate Forecast, expecting the recovery of commercial real estate to begin in 2011. “The national economy has begun a slow and cautious recovery, but the labor market, which often lags the broader economy, will turn around only gradually with sustained improvement unlikely before the second half of 2010. Because commercial real estate lags the labor market, it still has a ways to go before reaching its own low point,” said Bob Bach, senior vice president, chief economist of Grubb & Ellis.
Grubb & Ellis expects the four core property types of commercial real estate to recover in the following order; Multifamily Housing, Industrial, Retail and Office, concluding that the “free fall we saw in 2009 is over, and the future is more certain, giving owners and users of real estate the confidence to begin making decisions again,” said Bach. California, especially Los Angeles is expected to lead the market due to its constant growth and appeal for employment.
Source: Grubb & Ellis Company
Related Links: http://www.grubb-ellis.com/forecast2010/