July 26, 2006—US commercial real estate is still perceived as a favorable allocation alternative for investors — despite concerns about higher energy costs, rising interest rates and the possibility of higher capitalization rates down the road, according to PricewaterhouseCoopers’ Second Quarter 2006 Korpacz Real Estate Investor Survey.
While the relative strengths of individual property sectors vary from market to market, underlying fundamentals continue to evoke a strong sentiment of confidence among investors about the future, the survey finds.
“With the overall economy showing continued strong gains in employment as well as high levels of consumer confidence, investors seem poised to continue their long-standing infatuation with the US commercial property markets,” said William Croteau, US Real Estate Sector Leader for PricewaterhouseCoopers.
“We’re seeing continued faith in real estate as a target for asset allocation,” added Peter F. Korpacz, Director of Global Real Estate Research for PricewaterhouseCoopers. “As long as the fundamentals continue to trend positive, investors’ confidence in real estate should also remain strong.”
The quarterly survey of professionals involved with the real estate industry, including institutional investors, REITs, pension funds, mortgage bankers, developers and insurance companies, identifies trends across key real estate industry sectors.
The second quarter 2006 Korpacz Real Estate Investor Survey provides detailed overviews of national retail markets, including regional mall, power center and strip shopping center overviews; overviews of 14 major office markets; and national overviews of the Flex/R&D, Warehouse, Apartment, Net Lease, and National Development Land markets. The report also features up-to-date commentaries concerning Valuation Issues, Technology News and Trends, Economic News, and the Real Estate Capital Markets.
One year online or electronic (PDF) subscriptions to the survey can be purchased for $350 at the PricewaterhouseCoopers Web site.
