LoopNet Survey Shows Fading Hopes for Commercial Real Estate Recovery in 2010

Article Tools

Latest News

More Latest News

When will the commercial real estate market hit bottom and begin to recover? Nearly half of respondents (46%) to a LoopNet survey believe that the market transaction volume won’t recover until 2011 or later, up from 13% in July. More than 1,000 LoopNet members responded to the poll, which was conducted in the second half of October.

Meanwhile, the number of respondents who anticipate a rebound in 2010 or earlier has dropped significantly to 50%, down from 66% in July 2009. Nearly one in five respondents don’t expect a recovery in transaction volume until 2012.

Investors are a slightly more pessimistic group than all other respondents. Their median expectation for recovery is approximately one quarter later than that of brokers or commercial property owners, according to LoopNet.

Despite a drop in commercial real estate prices over the past quarter, 53% of respondents believe that commercial real estate prices will not hit bottom until they’ve dropped an additional 11% or more. That sentiment is virtually unchanged from the previous quarter when 52% of respondents forecast a decrease in pricing.

While all three groups surveyed — investors, brokers and owners — expect values to drop further, owners are the most optimistic, with nearly 20% saying prices have already bottomed.

The biggest barriers to commercial real estate market recovery, according to LoopNet respondents, are a lack of access to debt financing followed by high asking prices.

San Francisco-based LoopNet is one of the giant operators in the online commercial real estate marketplace. Among its 3 million members are commercial real estate investors, brokers and owners who use the company’s online platform to search for available space and investment opportunities, and to market available properties.


Acceptable Use Policy
blog comments powered by Disqus

Photo Galleries

Hudson Yards Development

http://nreionline.com/photo_gallery/hudson_yardsCheck out images for Coach's new global headquarters, which will anchor the initial tower of the Eastern Rail Yards site within the 26-acre mixed-use Hudson Yards Development on Manhattan's far West Side.

Outstanding Women in Commercial Real Estate

From housing low-income families in Southern California to closing some of Manhattan's largest office leases, women leaders are using commercial real estate as a platform to reshape communities while they drive investor returns.

Click here to view more photo galleries.

Videos

2011 CoreNet Fall Summit Video Blogs

http://nreionline.com/video/corenet_thumbnail.jpgCheck out these great videos from the 2011 CoreNet Fall Summit in Atlanta...

 

Click here to view more videos.


Blogs


Traffic Court

BlackSwan

http://nreionline.com/nrei-300x125-house-091211-resourcebook-jpg.jpg

This Week's Most Popular

Current Issue

NREI Newsletters

Join the Conversation