A recovery in the commercial real estate market still seems unlikely in the short term, say industry experts who examined the issue last week during a conference sponsored by The Wharton School of business at the University of Pennsylvania.
Billionaire investor Sam Zell predicted that it will be three to four years before the 7 million jobs lost during the recession are regained. Zell said there hasn’t been substantial new commercial development since July 2007. As a result, vacant properties will be leased, but at 35 percent lower than current rents, he says.
Barry Sternlicht, chairman and chief executive of Starwood Capital Group, said the U.S. is in serious trouble because the regional banking system is nearly bankrupt and short selling is fueling any rally in real estate investment trusts.“I’m not at all bullish on the U.S.,” Sternlicht said
Source: Dow Jones Newswires, A.D. Pruit (12/11/2009)
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