“No recovery for U.S. property markets…"
“No recovery for U.S. property markets until 2017.” That’s what Reuters reported on June 22, 2009.
U.S. commercial real estate values were feared to fall another 50% from the peak in 2007. Building prices were feared to take six to eight years to recover.
Commercial markets were deteriorating at an incredible rate as rents dried up, as demand plummeted. There was no stability.
It was bad. No one in his or her right mind was touching commercial property.
Nearly $73 billion worth of commercial real estate loans were in distress. Even Dallas Fed president Richard Fisher believed, “problems in the financial industry and commercial real estate have the potential to intensify.”
Vacancies were rocketing higher. Millions of square feet of space were under construction. It was chaos.
But we’ve seen more than just a recovery.
Before 2017 even rolls around, we’ve seen a boom that some think is overdone, over-inflated in bubble territory.
But given the demand, the reward, the money being spent on property, the recovery is far from over.
In fact, in the first half of 2015, global investment in real estate has reached its highest level since 2007 thanks to deals in the U.S, most notably New York City, according to CBRE.
New York City alone attracted more than $40.1 billion in the first half of the year, accounting for 10% of the $407 billion spent globally. London attracted $19.4 billion. Los Angeles saw $19.3 billion.
Even more impressive, that $407 billion figure is 14% higher year over year.
There are no bubbles here, folks… just growth opportunity for those with patience.