Real Estate Pros Predict Better Apartment Market
(October 6, 2004) -- A majority of respondents to a recent survey of real estate professionals believe the U.S. apartment market is on track for the biggest improvement in fundamentals of any sector over the next year.
The survey, by National Real Estate Investor magazine and Marcus & Millichap Real Estate Investment Brokerage Co., shows that the rosy outlook is due to the low costs of financing acquisitions in the sector, the reduced number of available units, and apartment units' short-term lease spans, which means that rents could be raised at a faster rate.
Looking at the office sector, most of the property pros polled concurred that rents and property values will likely remain the same or increase in the following 12 months. However, many of the 648 respondents expressed concern that as leases signed during the boom years of the late 1990s near expiration in the next several years, new leases and renewals will be signed at significantly lower rates.
Respondents also said they believe a victory by George Bush in the November presidential election will generally have a more favorable impact on commercial real estate than a John Kerry triumph.
Source: Wall Street Journal (10/06/04); Smith, Ray A.
Comments(0)