Your Commercial Real Estate Source in the San Francisco Bay Area
As second quarter reports begin to come out, many are predicting the overall commercial real estate industry to show positive signs. According to CoStar, they show a general recovery underway although the story is slightly different depending upon the property type. The Bay Area is showing signs of life, especially in the office and apartment sectors, but as the story reveals, industrial has been lagging behind, albeit modestly. We are seeing inventory at moderate levels, with certain areas being difficult to find although the rates continue to bounce along the bottom with rates staying very competitive and landlords offering concessions. Here’s the story, but make sure to check back for our local quarterly report due out in the next week or so.
Commercial real estate fundamentals continued to strengthen in the second quarter of 2011, albeit at a much more moderate pace than the end of last year. The temperate recovery is consistent with global economic trends, which softened in the first half of the year in the face of the Japanese earthquake and the oil-price shock.
While the economy continues to face challenges – including a struggling housing market, anemic job growth, and federal and state fiscal pressures – economic growth is expected to pick up in the second half of the year as energy prices ease and global supply chains are restored. As the economy gathers momentum, the CRE recovery should also accelerate, according to Kevin White, a real estate strategist with CoStar.
Read more of the story here.