January 30, 2008—While the credit crunch and economic uncertainty have caused investor anxiety and tighter lending standards, commercial real estate remains comparatively attractive with solid underlying fundamentals, plentiful capital, and steady allocations, according to Deloitte LLP’s Real Estate Capital Markets Top Ten Issues—2008 Report.
“In prior boom cycles, commercial real estate has responded by overbuilding. The industry has clearly learned its lesson because this time commercial real estate is enduring a credit crunch not a crisis partially because it resisted this urge. No doubt, the industry is in a strong position to withstand a recession, should one occur, and commercial real estate remains a viable investment option for those seeking to diversify and insulate their portfolios from market volatility,” said Dennis Yeskey of Deloitte’s real estate capital markets practice. “Capital flow will return in 2008, with the exception of highly leveraged deals, and new opportunities are being sought in distressed debt funds, niche opportunities, and global markets.”
The report provides insight about commercial real estate market trends, over the short and long term, through a review of critical issues, an examination of the industry’s core fundamentals, and an analysis of underlying factors.
This is Deloittes tenth Real Estate Capital Markets Top Ten Issues Report. A copy of the report is available on Deloitte’s Web site.
