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Fitch: Office, Apartment Markets Likely to Remain Soft This Year.(Fitch Ratings)

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| February 01, 2003 | COPYRIGHT 2003 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Fitch Ratings expects to see continued weakness in the office and apartment sectors for the next year.

Based on a study of the interaction, over a 10-year period, between property types and markets, the rating agency has assigned scores to different markets.

Fitch has made volatility-based rankings ranging from one to five to different property markets, with one representing the least volatility.

Fitch's latest study found that 145 secondary markets improved their volatility scores.

Of these, 47% were in the retail sector and 28% in the hotel sector.

Mary O'Rourke, senior director, Fitch Ratings, said, "Fitch expects to see a continued softening in the office and apartment sectors for at least the next 12 months and anticipates a decline within the retail sector starting in the second quarter of 2003."

And while the hotel sector's overall volatility score showed a "small improvement," the sector still has the worst volatility group performance, with an overall score of 4.29.

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Source: HighBeam Research, Fitch: Office, Apartment Markets Likely to Remain Soft This...

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