Since the early 1990s, the major investors in U.S. commercial real estate have waited on the sidelines as property values, rents and occupancies dropped dramatically.
Now, a new influx of capital is coming back into the market as investors believe the industry has turned the corner and started its recovery.
This is a source of both optimism and concern for Richard G. Carlson, Managing Director of Real Estate for Deloitte & Touche LLP, who predicts that 1995 will be a "watershed year" for the commercial real estate industry.
"The industry has clearly started to recover," Carlson said. "Commercial rents and occupancies are slowly increasing. Granted, the recovery varies by properly type and geographic segment, but overall the trend is positive. Capital has started to come back to …