Soft Landing
Nov 1, 2007 12:00 PM
The U.S. commercial real estate market will experience a slowdown next year, with rising cap rates and tightening lending requirements, says a recent report titled “Emerging Trends in Real Estate 2008” from the Urban Land Institute and PricewaterhouseCoopers LLP.
The report, released on Oct. 17, notes that more than 600 of the country's leading real estate experts predict a forthcoming healthy correction in the commercial sector that will not be as severe as the one taking place in the residential market. Long-term investors who exercised caution in their borrowing practices will weather the downturn just fine. Over-leveraged buyers, however, will have cause to worry.
The report predicts that 24/7 cities with global ties will weather the downturn the best, singling out New York as the “hottest commercial real estate market in the country.”
