Commercial real estate market remains muted

(This article was published by the Puget Sound Business Examiner on line edition Friday June 18, 2010)
Commercial real estate investors reveal both frustration and disappointment at the lack of quality buying opportunities that many expected would have materialized by now, according to the second quarter 2010 findings of PricewaterhouseCoopers' Korpacz Real Estate Investor Survey.

The report notes that the unknown speed and strength of the economic recovery has many investors anxious, with the uncertainty surrounding the large debt volume coming due during 2011 and 2012 amplifying the angst.
The report finds that despite encouraging economic data reports for retail sales and job growth, the retail sector continues to struggle and present challenges to property owners.

In the office sector, overall vacancy rates show some signs of improvement as the rate at which space is being returned to the national central business district office market has slowed dramatically over the past year.

In the industrial sector, the report notes that market conditions continue to soften, but at a slower pace than in months past.

The report also finds that the apartment sector is continuing to lead the recovery with investment appetite for high-quality assets in first-tier markets showing an uptick in transactions in the national apartment market.