2012 CRE Forecast — More of the Same


Patience is a virtue was the message from PWC’s Emerging Trends in Real Estate for 2012 report.  PWC in conjunction with Urban Land Institute surveys 950 leading real estate experts and publishes a report that confirms my thoughts.  Here are the key highlights:

  • Real estate professionals must resign themselves to a slow, sporadic economic recovery that will be confined largely to markets that have 24-hour transportation hubs with global access.
  • The sluggish economy and unemployment continue to weigh down the real estate market – heck, the economy and unemployment are weighing down everybody.
  • We have a new catchphrase the “Era of Less” – everybody is tightening their belt.  This includes corporations, governments and individuals.
  • In 2012, they are expecting more properties up for sale, but fewer buyers due to the economic uncertainty.  I personally would include the presidential elections as a reason many investors will sit on the sidelines next year.
  • It’s all about the fundamentals of real estate:  location, location, location.  The best investor bets for 2012 should have low unemployment and be trophy assets within cities along important global commercial routes.

This is not a glowing outlook for 2012 and shows the frustration real estate players have been experiencing over the past several years.  This survey does not even consider the over-leveraged office buildings that have notes coming due in the next 18 months.  My prediction for 2012 – it’s better to be a tenant than a landlord.

Click here  for the full article.  Please remember – if your lease is expiring in the next two years, give me a call.   I level the playing field with your landlord and at no cost to you.


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