CRE prices expected to hike considerably in first half of 2012

Between January and June 2012, commercial real estate prices are forecast to rise significantly, according to a market outlook from Green Street Advisors.

Between January and June 2012, commercial real estate prices are forecast to rise significantly, according to a market outlook from Green Street Advisors.

In its Commercial Property Price Forecast report, the company stated CRE values should rise roughly 5 percent during the first six months of the year. The projection is based on activity in the REIT and corporate-bond markets, GSA noted.

"That's a notable improvement over the outlook a few months back, largely because the increased optimism being expressed by REIT investors and the decreased skittishness evidenced in the high-yield market should eventually find their way into property valuations," the firm said in its report.

A separate forecast indicates other facets of the CRE market - notably the multifamily sector - will see marked increases in activity between 2012 and 2014.

NAI Global insisted in its report that 2.3 million additional renter households will be added during the next three years, along with 300,000 multifamily home starts. Property data from 2011 indicates the multifamily market grew substantially.



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