In case you missed it: Commercial real estate leaders optimistic about 2013, potential fiscal cliff problems, tech boosts San Francisco office market
Oct 29, 2012
It’s earnings season, and while public companies are sharing their latest results with shareholders, many are already looking ahead to 2013. Here are four stories we read last week that give us a glimpse of what the new year might hold.
Commercial Property Executive: “Economy Watch: Residential Delinquencies Jump; Most Housing Markets Worse Off”
RealtyTrac measured 919 housing markets by five different metrics and found that most housing markets are worse off than four years ago. Markets were measured based on their average home prices, unemployment, higher foreclosure inventories, foreclosure starts, and distressed sales. Of the 919 counties studied, 580 had three or more declining metrics. Catch up on RealtyTrac’s report over at Commercial Property Executive.
Los Angeles Times: “Commercial real estate recovery will continue, report says”
While the RealtyTrac numbers aren’t positive, commercial real estate industry leaders are largely optimistic about 2013. They expect the market will continue along the road to recovery in 2013 with increases in leasing, rents, and sales prices, according to a report by the Urban Land Institute and PricewaterhouseCoopers. Industry experts surveyed expect that recent job growth will aid vacancy rates in the office, industrial, and retail sectors. To read more on commercial real estate’s expected recovery, click through to the Los Angeles Times.
GlobeSt.com: “Fiscal Cliff Could be Problematic for CRE”
The positive outlook for 2013 from the story above might be dampened by the impending “fiscal cliff.” Unless Congress acts, Jan. 1, 2013 will bring a host of spending and tax cuts, including $600 billion cuts for both defense and domestic spending. The article argues these spending cuts will result in higher unemployment, lower GDP, and increasing vacancy rates for the office and industrial sectors. Run down the specifics on how the fiscal cliff could be problematic for CRE over on GlobeSt.com.
The Wall Street Journal: “Tech Boosts San Francisco”
San Francisco’s offices have been filling up with new tech companies working in social media and apps. As a result, a number of new office properties are being proposed, including Transbay Tower, a proposed 1,070-foot office tower that would become the tallest building on the West Coast. Hines and Boston Properties announced that they will partner to pay $185 million for a development site south of San Francisco’s financial district on which to construct the building. While it is still unclear whether the development will move forward without signed tenants, Hines reported that financial and technology firms with upcoming lease expirations have expressed significant interest. Head over to The Wall Street Journal for the full details on San Francisco’s office sector.
As evidenced by last week’s news, many in the commercial real estate industry are already looking ahead to the new year. What do you think is in store for commercial real estate in 2013? Leave a comment below.