Commercial real estate to fuel "recovery from the recovery"

Commercial real estate will fuel a "recovery from the recovery", a report from PwC and the Urban Land Institute has predicted. The research forecast 2014 as the year when real estate markets would recover, buoyed by growing demand for commercial property.

Indeed, the sector has reached an "inflection point" where "valuations will no longer be driven by capital markets". Even though commercial real estate growth may not be staggering this year, it is expected to be enough to fuel a rebound, driven by improving rental rates, occupancy rates and property enhancements.

"We have a new paradigm here. It is not the kind of recovery we have seen before with 250,000 new jobs a month. It's a recovery with 100,000-plus jobs a month," one participant in the survey said.

Source: Examiner