Commercial Real Estate Outlook Improves

July 30, 2012

Optimism over corporations’ rising profit expectations is contributing to an improved outlook for commercial property for sale San Diego, according to PwC and Urban Land Institute’s 2012 Emerging Trends Mid-Year Update.  

The 195 industry executives who responded to the survey indicated that profitability, lending, and investor markets are looking up through year-end.  

Foreign investors and private equity will remain the top purchasers of commercial property for sale San Diego through the remainder of the year, according to the survey. However, private local investors and public equity real estate investment trusts buyers acquired an increasing share of properties in 1Q12, according to Real Capital Analytics. 

The value of debt capital sources is showing positive signs, with insurance companies occupying the No. 1 spot and government-sponsored entities’ value increasing more than 11 percent since November 2011. Commercial mortgage-backed securities, commercial banks, and mezzanine lenders also posted positive gains. 

 All five major sectors of commercial property for sale San Diego also reported higher values, according to the survey. Apartments continue to rank first, followed by the industrial/distribution sector, which posted a significant value increase. Hotels ranked third and logged the biggest gain overall as corporate and individual travel show signs of improvement. 

Source: CCIM

 

DISCLAIMER: This blog has been curated from an alternate source and is designed for informational purposes to highlight the commercial real estate market. It solely represents the opinion of the specific blogger and does not necessarily represent the opinion of Pacific Coast Commercial.