NEW YORK, NY -- Investors Ready to Purchase, Just Waiting For 'Right' Deals The RICS Global commercial property Survey for the third quarter of 2009 shows an overall decrease in the negative sentiment felt by North and South American commercial property professionals in the economy generally and in the region's office, retail and industrial real estate markets, in particular.
The survey is conducted by the Royal Institution of Chartered Surveyors on a quarterly basis and asks commercial property professionals about their sentiment on a range of economic and real estate issues covering the previous and coming three months.
In the United States in particular, the survey revealed that commercial property professionals feel investor concerns over the outlook for real estate may be easing. Only a net 24 percent of respondents now expect investors to hold off putting their money into commercial property, compared to the second quarter's net 43 percent. Compared to the fourth quarter of 2008, this is a significant decline from the net 92 percent of respondents who said then that they expected investors to be reluctant to put their money into property.
But is less of a bad thing a sign of good things to come?
"Brokers report little or no improvement in commercial real estate in general," said Stephen Crosson, MRICS, Senior Partner of the Dallas advisory firm, Crosson Dannis Inc. "There are many investors ready to purchase, albeit at significantly lower values than sellers are willing to accept."
Real estate activity in the United States appears to be aligned with most other countries in the Americas, although a few South American countries appear to be heading for more rapidly improving property markets. In Brazil, Chile, Columbia and Peru respondents indicated a gradual strengthening of occupier demand for most types of space. In fact, among Peruvian commercial property professionals, nearly 60 percent net respondents confirmed improving tenant demand. In the United States and Canada, though, respondents were less bullish in expecting tenant demand to remain weak during the fourth quarter.
"General economic indices look slightly more positive and confidence is guardedly returning, but tempered by concerns of rising short-term unemployment and long-term inflationary fears," said Steve Williams, FRICS, Global Advisor to Real Capital Analytics and founding partner of NY consultants, Williams-Murdoch. "While recovery theorists abound, the market has yet to confirm the veracity or resilience of the market's green-shoots."
Worldwide, the survey revealed that compared to North America, sentiment is generally improving, especially in Asia. South Korea, China and India all reported an improved sentiment. Hong Kong in particular saw a significant upward swing. Back in the second quarter of the year a net balance of 67 percent of respondents from Hong Kong expected rents to fall further. By contrast, in the latest survey a net balance of 16 percent of respondents suggests rents are likely to rise during the next three months.
"The rebound in Asian economies is clearly being reflected in the more positive responses to both rental and capital value expectations throughout the region. By way of contrast, the relatively sluggish economic revival through much of the U.S. is consistent with the more downbeat results for this region," said RICS Chief Economist, Simon Rubinsohn. "This contrast could become even more pronounced through 2010 as any unwinding of the monetary and fiscal stimulus presents a further challenge to the tentative recoveries being experienced in most western economies."
About the Global commercial property Survey:
RICS' Global commercial property Survey is a quarterly guide to the developing trends in the commercial property investment and occupier market. This edition details market conditions for the third quarter of 2009 based on information collected from leading international real estate organizations and local firms. 430 property professional offices responded to the questionnaire conducted between September 1, 2009, and September 10, 2009. The full report is available on the RICS Americas Web site at:
http://www.ricsamericas.org/news/rics-global-commercial-property-survey-q3 -2009/
About RICS & RICS Americas
RICS (Royal Institution of Chartered Surveyors), with headquarters in London, is the leading organization of its kind in the world for more than 100,000 professionals in property, land, construction and related environmental issues.
RICS Americas, based in New York and covering North, Central and South America and the Caribbean, has more than 3,000 members in commercial and residential development, construction and project management, brokerage, planning and finance, valuation and fine arts appraisal. For further information visit www.ricsamericas.org or e-mail ricsamericas@rics.org.
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Source: RICS Americas
CONTACT: Gretchen Steinmiller, Senior Account Executive,
+1-212-840-1661, gretchen@blisspr.com, for RICS Americas
Web Site: http://www.ricsamericas.org/
About This Release
If you have any questions regarding information in this press release, please contact the organization listed in the press release. Issuers of press releases and not TCI are solely responsible for the accuracy of the content.
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