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

Judge Ends Laminate Copyright Dispute between Home Legend and Mannington   Full Article
Rome, GA July 3, 2014 -- A U.S. District Court in Rome, Georgia ruled in favor of Home Legend in a legal dispute over similar looking laminate floorcovering. The judge ruled nature can't be copyrighted.

Job Openings at Highest Level Since 2007   Full Article
Washington, DC, July 8, 2014 -- Job openings in the U.S. rose in April to the highest level since September 2007, according to the Labor Department.

CARE Seeking Proposals for PET Market Project   Full Article
Dalton, GA, July 8, 2014 -- Carpet America Recovery Effort is seeking proposals for a 12-18 month project to demonstrate value-added uses for polyethylene terephthalate (PET) derived from post-consumer PET carpets.

Quick-Step Hosts Event for Shelter Charity   Full Article
Dallas, TX, July 8, 2014 -- Laminate maker Quick-Step recently co-hosted an event to benefit the local charity Dwell With Dignity.

Prince of Wales Hosts Wool Campaign Event   Full Article
London, England, July 8, 2014 -- To commemorate the fifth anniversary of the Campaign for Wool, the campaign's Patron His Royal Highness The Prince of Wales hosted a major celebration of wool at Clarence House.

Curacao Firm Develops New Locking System   Full Article
Willemstad, Curacao, July 7, 2014 -- Innovations4Flooring, a technology company formed last year to supply flooring installation products, said it has developed a unique locking system for flooring.

UK Carpet Recycling Presents Awards   Full Article
Birmingham, England, July 7, 2014 -- Inspiration for manufacturers to design new carpet products for recycling or reuse at end of life was a key theme at Carpet Recycling UK’s sixth Annual Conference.

Estillon Wins Export Award in Netherlands   Full Article
Uden, The Netherlands, July 7, 2014 -- Estillon, a provider of subfloors, carpet underlays and accessories, took third prize for the Fenedex Frank Hauwert Trophy.

Mortgage Rates Lowest Since Last October   Full Article
Washington, DC, July 7, 2014 -- Mortgage rates hit 4.12% for a 30-year fixed rate last week, according to Freddie Mac.

Services Sector Growth Slows Slightly in June   Full Article
Tempe, AZ, July 3, 2014 -- Growth in the services sector of the economy slowed slightly in June, according to the Institute for Supply Management services index.

Planned Job Cuts Tumble in June   Full Article
Chicago, IL, July 3, 2014 -- Planned job cuts announced by U.S. companies in June fell to 31,434, the lowest level of the year and down 20% from a year ago, according to outplacement firm Challenger, Gray & Christmas.

Economy Adds 288,000 Jobs in June   Full Article
Washington, DC, July 3, 2014 -- Employers added 288,000 jobs in June, the Labor Department said Thursday.

Cersaie Show Set for Sept. 22-26 in Bologna   Full Article
Bologna, Italy, July 3, 2014 -- Cersaie—the world’s largest exhibition of ceramic tile and bathroom furnishings—will take place at the Bologna Exhibition Center in Bologna, Italy from Sept. 22-26.

NAFCD Issues Employee Compensation Report   Full Article
Chicago, IL, July 3, 2014 -- The North American Association of Floor Covering Distributors has released the 2014 NAFCD Employee Compensation Report.

E.J. Welch Promotes Two to Vice President   Full Article
St. Louis, MO, July 2, 2014 -- E.J. Welch Co. has promoted two employees to full time management positions.

Factory Orders Fall in May   Full Article
Washington, DC, July 2, 2014 -- Factory orders fell 0.5% in May, largely because of fewer orders for military goods, the Commerce Department said.

Private Sector Adds 281,000 Jobs in June   Full Article
Roseland, NJ, July 2, 2014 -- Private sector employment increased by 281,000 jobs from May to June, according to the June ADP National Employment Report.

Goodman, CEO of Space Flooring, Retires   Full Article
Glen Burnie, MD, July 2, 2014 -- Kent B. Goodman, owner and CEO of Space Flooring, has retired, according to distributor Haines.

Mortgage Application Volume Falls Last Week   Full Article
Washington, DC, July 2, 2014 -- Mortgage application volume fell slightly last week, according to the Mortgage Bankers Association.

Kinetex Wins Grand Prize for Innovation   Full Article
Dalton, GA, July 2, 2014 -- Kinetex textile composite flooring won the Grand Prize for Flooring Solutions in the 19th Annual Product Innovations Awards presented at NeoCon.