International investing firm Deloitte released a report indicating that as far as their experts are concerned, commercial real estate in the United States is clearly “fostering early stages of recovery”. While many analysts were beginning to make similar predictions by the end of 2010, most preferred a “wait and see” approach rather than taking a firm stand on the status of the commercial real estate sector. However, Deloitte’s report indicates that at least for now, the signs are positive.
Deloitte partners abroad are in agreement about the US commercial market as well, with Australian Deloitte real estate partner Alex Collinson stating firmly that there is a clear scope for inbound investments in the United States. “While not at 2007 levels, transactional activity is returning,” he said, adding that the “amend and extend” policies adopted by lenders over the past few years have paid off and prevented a more serious commercial crash. However, Collinson emphasized that “the lessons of the previous investment cycle need to be learned.”
To this end, the report outlined 10 issues affecting the 2011 commercial real estate market. Not surprisingly, these included economic instability and job market unpredictability. So while the signs of a recovery in the commercial sector are establishing a firm foothold, ultimately the market is still in a “bit of a wait and see approach,” said Collinson. With a little more stabilization, though, the recovery could actually gain pace in the coming year.