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Returns on commercial real estate investments for 2002 should be in the 7%-9% range, "absent an extended economic decline," according to an "emerging trends in real estate" report from Pricewaterhouse Coopers and Lend Lease Real Estate Investments.
According to the report, "2002 should mark the nadir of a sudden correction in U.S. real estate markets." However, "A potent combination of public market discipline, low interest rates and controlled supply have kept real estate markets in relative equilibrium - ready to withstand reduced demand from the expected recessionary fallout."
The report, based on an annual survey of real estate industry experts, says that returns in the hotel and retail sectors could be hard hit by the decline in travel and from reductions in consumer spending.
Also, major metropolitan office markets - New York, Washington, Boston, Chicago and San Francisco - will ...
Source: HighBeam Research, Market Can Withstand Downturn.(commercial real estate...