U.S. Commercial Real Estate Sector Recovery to Advance Further in 2013
The real estate recovery is set to advance in 2013, as modest gains in leasing, rents and pricing will extend across U.S. markets from coast to coast and improve prospects for all property sectors. Those are some of the findings of the “Emerging Trends in Real Estate 2013” report, released in mid-October by PwC US and the Urban Land Institute. ULI hosted its annual fall meeting in Denver Oct. 16 – 18.
According to survey participants, despite a slower-than-normal real estate recovery, U.S. property sectors and markets will register noticeably better prospects compared to last year. Recent job creation should be enough to increase absorption and push down vacancy rates in the office, industrial, and retail sectors, helped by the limited new supply in commercial markets. Robust demand for apartments should hold up, survey respondents indicate, even as new construction ramps up—and even the housing sector makes progress in most regions. Additionally, improving fundamentals should help with rents and net operating incomes, building confidence about sustained growth and strengthening recent appreciation.