Real Estate Investors Adjusting to 'New Normal'

Chicago, IL, Feb. 8, 2013 -- Frustrated by continued uncertainty, a sluggish recovery, and a challenging investment environment, investors generally appear eager to put the past behind them and adjust to the new normal, according to a study published jointly by Real Estate Research Corporation, Deloitte, and the National Association of Realtors.

According to the report, investors appear to realize that this environment will likely be with us for the foreseeable future, and that adjustments may need to be made to maximize commercial real estate investment performance and yield in our continuing slow-growth economy.

Among the reports findings are that the economy is expected to improve only modestly in 2013, with the budget deficit, tax increases, and cuts in government spending expected to continue the economic uncertainty.

In general, capital remains available for commercial property investments, but the discipline for capital has been inching upward and is becoming more selective. The report also carefully analyzes and offers an assessment of the office, industrial, apartment, retail, and hotel property sectors, as well as for commercial real estate as an asset class, for 2013.

“It is time to stop waiting for the economy and the investment environment to get better. This is it—this is the new normal—and we need to turn the page on the past and make the adjustments needed to be successful for the balance of this decade,” said Kenneth Riggs, Jr., chairman and president of RERC.

“Investors are facing the challenges ahead, and commercial real estate continues to be an attractive investment for a variety of reasons in this economic climate.”

The group expects the commercial real estate recovery to continue throughout 2013. “A pent-up demand for commercial property space has been developing with the nearly 5 million net new job creations in the past three years,” said Lawrence Yun, NAR chief economist.

“That demand steadily reaching the market, combined with little new construction, will likely help lower vacancy rates and push up rents.”



Other Archived Articles

Initial Unemployment Claims Fall Last Week   Full Article
Washington, DC, Dec. 4, 2014 -- Initial claims for unemployment benefits fell last week, according to the Labor Department.

Planned Layoffs Plunge in November   Full Article
Chicago, IL, Dec. 4, 2014 -- The number of planned layoffs by U.S. employers declined 30% in November from October, according to outplacement firm Challenger, Gray & Christmas.

TISE Says Education Program Space Filling Fast   Full Article
Dallas, TX, Dec. 4, 2014 -- The International Surface Event said that space is filling up fast for the TISE 2015 education program.

Stone & Pewter Accents Rebrands as Lunada Bay   Full Article
Torrance, CA, Dec. 4, 2014 -- Stone & Pewter Accents, a manufacturer of stone and pewter tile, said it has rebranded as Lunada Bay Tile.

Pantone Names Marsala 2015 Color of Year   Full Article
Dalton, GA, Dec. 4, 2014 -- Pantone said that its Color of the Year 2015 is Marsala 18-1438.

Services Sector Expands at Faster Pace   Full Article
Tempe, AZ, Dec. 3, 2014 -- The services sector of the economy grew faster than expected in November, according to the Institute for Supply Management.

Private Sector Jobs Increase by 208K in November   Full Article
Roseland, NJ, Dec. 3, 2014 -- The private sector added 208,000 jobs in November, according to the monthly ADP Employment Report.

Propex Rebrands ISIS Carpet Tile Backing   Full Article
Chattanooga, TN, Dec. 3, 2014 -- Propex said it is replacing the brand name “ISIS” with “ARTIS” for its woven post-consumer recycled PET primary backing for modular tile.

Home Purchase Mortgage Applications Rise   Full Article
Washington, DC, Dec. 3, 2014 -- Mortgage application volume fell last week as refinancing applications declined, according to the Mortgage Bankers Association.

Nora Sheet Flooring Wins Award   Full Article
Salem, NH, Dec. 3, 2014 -- Nora said that its Noraplan nTx has been awarded a 2014 Record Product Award from Architectural Record magazine.

WFCA Lobbies for Internet Sales Taxes   Full Article
Anaheim, CA, Dec. 2, 2014 -- World Floor Covering Association officials recently met with the staffs of top members of Congress about proposed Internet sales taxes and and other issues of importance to flooring industry retailers.

Construction Spending Edges Higher in October   Full Article
Washington, DC, Dec. 2, 2014 -- Construction spending in October was estimated at a seasonally adjusted annual rate of $971.0 billion, 1.1% above the revised September estimate of $960.3 billion, according to the Commerce Department.

Distributor Belknap White Expands Armstrong Line   Full Article
Lancaster, PA, Dec. 2, 2014 -- Armstrong Floor Products said that distributor Belknap White (Patriot) will handle Armstrong residential products in Southern Connecticut, Metro New York and Northern New Jersey effective January.

Easy Turf Signs Tomlinson as Spokesperson   Full Article
Vista, CA, Dec. 2, 2014 -- EasyTurf has re-signed NFL Most Valuable Player LaDanian Tomlinson as a spokesperson.

Manufacturing Continues To Expand in November   Full Article
Washington, DC, Dec. 1, 2014 -- Manufacturing continued to expand in November but at a slightly slower pace, according to the Institute for Supply Management.

Carpetland USA Colortile Holds Buying Meeting   Full Article
Chattanooga, TN, Dec. 1, 2014 -- Carpetland USA Colortile held its 2014 Buying Committee Meeting in Chattanooga Nov. 17-18

FloorFolio Gets Second Patent for EnviroQuiet   Full Article
Edison, NJ, Dec. 1, 2014 -- FloorFolio Industries said it has received a second patent for EnviroQuiet luxury vinyl tile.

INSTALL Adds Five New Members   Full Article
Haddonfield, NJ, Dec. 1, 2014 -- INSTALL has added five new partner companies to its ranks. The newest companies are:

Durable Goods Orders Up on Military Spending   Full Article
Washington, DC, Nov. 26, 2014 -- Durable-goods orders rose last month mostly due to military spending, the Commerce Department said.

Consumer Spending, Income Rise in October   Full Article
Washington, DC, Nov. 26, 2014 -- U.S. consumer spending picked up at a modest pace in October, according to the Commerce Department.