Commercial real estate sector recovering

Office prices should stabilize in most areas this year.While the national economy has been slow to pick up steam in some areas, the PwC Real Estate Barometer shows there is optimism in the commercial real estate sector.According to the report, more than half of office properties nationwide should be in recovery by the end of this year due to a decline in vacancy. More than 82 percent of the market will be recovering by the end of 2012, leaving only properties in Las Vegas and other hard-hit cities struggling.Overall, commercial real estate investors may be looking to find quality properties in cities with a strong local economy, such as the Houston real estate market.”[Investors] are eager to get deals done,” said Mitch Roschelle, partner and U.S. real estate advisory practice leader at PwC. “The volume of capital chasing deals is expected to increase in all sectors as investors work to deploy capital before interest rates rise, overall cap rates increase, and the industry shifts more in favor of sellers.”Prices also continue to favor buyers. According to the Moody’s/REAL Commercial Property Price Index, commercial property prices fell 1.2 percent from December to January.Courtesy of 2M Realty News

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