Commercial real estate property executives who are not having a good time this year in terms of real estate investments have higher hopes for the coming new year. According to a new PwC report, investors intend to take higher risk and make more commercial real estate property acquisitions by 2011.
U.S. investors who were quizzed for the PricewaterhouseCoopers (PwC) report, a global professional services firm headquartered in London, United Kingdom, are said to be more optimistic about the year ahead.
According to the report, investors are giving a nod to the recent developments in the office market and other commercial real estate property, especially in Dallas area. There are also talks about limited rebound in some U.S. market developments next year.
The office market in North Texas ended with a modest decline in net leasing—the second consecutive year where the office occupancy rate has declined, but the worst office market decline in Texas appears to have ended.
Office construction in the state are said to bounce back after 2009’s decline in commercial real estate property. There are several corporate building deals and new medical office construction.
Commercial real estate property including industrial and warehouse businesses barely keeps up with the market during the end of 2010. There is an estimated 1.5 million square feet of downbeat leasing in 2010, according to Cushman & Wakefield.
Developments for industrial construction and leasing activities are said to take place during the second half of 2011.
However, retail commercial real estate property and center are hopeful for a modest rebound next year.