DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/t73nwp/united_states_real) has announced the addition of the "United States Real Estate Report Q3 2012" report to their offering.
The United States Real Estate Report provides industry professionals and strategists, corporate analysts, real estate associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on United States's Real Estate industry.
Despite the bleak horizon outlined in BMI's Q112 report, the US commercial real estate market is continuing to exhibit signs of a recovery, albeit a cautious one. Positive consumer sentiment has gone some way to keeping real estate investment afloat. The overriding view seems to be that the outlook for commercial real estate is improving, but that ongoing vulnerability in the market is leading to continued caution among real estate players. This indicates that while the recovery is under way, it will continue to be slow.
Office vacancy levels currently remain high, and forecasts for a decline in unemployment have not yet reversed this trend. New office space is being added at a higher rate, but has not yet matched that discarded during the downturn. Retail activity is being buoyed by a shift in focus to second-tier shopping malls, as competition for top quality space has saturated that part of the market. International retailers are also pursuing expansion plans across the US, taking advantage of a recent move for some major retailers to close some of their stores. Meanwhile, industrial production in the US - which has long been a driver of growth - remained unchanged in March from February. While not signifying a decline, this is indicative of the slow pace of the current recovery.
As the bounce in US economic growth at the end of 2011 is set to abate as 2012 progresses, BMI are maintaining their forecast for GDP growth of 2.0% for the year. The view is that the US will avoid a double-dip recession, but that the European debt and economic crisis represents a constant threat to stability. However, we do see room for growth in net exports, as residential investment recovers and business investment grows.
Key Opportunities In The Real Estate Market
- Prime office markets seem to be holding up well, in spite of the economic uncertainty. Recent deals involving desirable office space have highlighted that this side of the market could help to boost areas of the office sub-sector which may fare less well in the coming months.
- Economists are continually optimistic about job growth in 2012, which may see a reduction in office vacancy rates, as the market is closely tied to unemployment levels.
- The ongoing economic uncertainty in the eurozone has led expectation for investment from Europe (and the UK in particular) to increase in the US.
- Impediments to economic recovery continue to pose risks to investment. They include high energy and commodity prices, the level of debt in the eurozone in particular, and the US budget deficit.
- Speculative development is beginning to resurface in the country, but if the economy continues to recover only slowly, this may lead to an increase in vacancy rates as demand is not yet sufficient to match an increase in supply.
- If industrial production continues to stagnate, there may be a corresponding drop in industrial real estate activity.
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