The road to recovery for commercial real estate will be slow and long, according to a study commissioned by PricewaterhouseCoopers (PwC).
The Korpacz Real Estate Investor Survey shows real estate investors don’t expect a recovery in the commercial sector until late 2011 or 2012. In addition, billions in commercial mortgages are expected to come due in 2010.
Self-storage has fared better than most other commercial real estate classes. Revenue has declined but remains relatively stable compared to office, multi-family and warehouse sectors, the report shows. Overall, investors are optimistic about self-storage investment.
Despite the challenges, the firm says next year will be a good time to purchase commercial real estate. Prices will likely be influenced by politics rather than occupancy rates, PwC says. However, sales activity will likely remain sluggish across all property types. Government policy has already had a positive influence on the commercial real estate sector and will likely determine the shape of its recovery, the firm says.