Commercial real estate growth expected to be slow but steady this year

A recent report from Grubb & Ellis Company anticipates another year of slow, but steady commercial real estate growth during 2012.

A recent report from Grubb & Ellis Company anticipates another year of slow, but steady commercial real estate growth during 2012.  

The company's forecast is based on two key market indices - a Momentum Index and an Investment Opportunity Index.   

"Although a variety of economic and political factors, including continued high unemployment, an upcoming U.S. presidential election and the unresolved European sovereign debt crisis weigh on the minds of real estate owners, users and investors, we anticipate gradual improvement in leasing markets and a boost in investment sales volume," said Grubb & Ellis senior vice president and chief economist Robert Bach.

However, this forecast is based on the assumption that GDP growth will be at least 2 percent in 2012 while an average of 125,000 net new payroll jobs are added per month.

Meanwhile, the housing market outlook anticipates sectors to perform in the following sequence from best to worst: multi-housing, hospitality, industrial, retail and office sectors.

The multi-housing sector is expected to continue to show a strong performance during 2012 as rental and occupancy rates increased.



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