Deloitte: US Commercial Real Estate— Encouraging

January 18, 2011 / Elizabeth Buckley, Commercial Property Analyst

A recent report from Deloitte, a major international accounting and consulting firm stated that US commercial real estate is developing an early phases of recovery. The firm’s recent study takes a closer look at the US commercial real estate (CRE), market development and trends, which is focusing on the position for recovery.

Deloitte: US Commercial Real Estate— Encouraging

According to  Deloitte Real Estate partner in Australia, Alex Collinson, there is capacity for inbound investment into the country, as far as the US commercial real estate’s potential, and if the market’s recovery gathers pace.

But, the period of the previous investment cycle needs to be learned, added Collinson.

He also points out the fact that Australia has shorter and shallower dip with lesser vacancies, plus the positive signs from the recent rental activities suggest a quicker recovery, compared to the US commercial real estate.

The Asia Pacific region and Australia are now leading the worldwide real estate recovery in terms of investment. Real estate investment trusts are said to be going back to square one.

US commercial real estate’s transactional activity is now coming back, but not to the 2007 level, according to the report. Plus, debts are now treated by amending the extending.

Deloitte’s report summarizes 10 issues affecting US commercial real estate market for the year 2011, including the fact the current CRE status has existing uncertainty, even as the decline defies expectations, and plus the fact that the course of economic fundamentals remains tentative.

Collinson also said the current US commercial real estate’s status is about “bit of a wait- and- see” at the moment, but the signs are encouraging.

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