If you're like me, then a slow and steady real estate market bodes much better for all involved in the business than a recovery fueled by unsustainable prices, rents and sales. So, when I read, hear or see reports from media about real estate statistics not reaching or hitting the numbers of 2005, let's say, then my thought is that is good news for our economy right now. And, in saying all this, Grubb and Ellis' new 2011 Real Estate Forecast that activity in the investment market will expand beyond assets at the top and bottom of the quality scale to include properties with slightly more risk is positive news.
“All things being considered, 2010 was actually better than most anticipated it would be – we saw positive net absorption and an uptick in investment sales during the second half of the year, positioning us for a continued recovery in 2011,” said Robert Bach, senior vice president, chief economist of Grubb & Ellis. “We have challenges to overcome, and we don't expect fundamentals to return to their pre-recessionary peaks for several more years, but we're slowly and cautiously building the foundation necessary to do just that.”
Mr. Bach: I tried but couldn't say it any better than that! Do you agree?
One last note: Grubb predicts that the Multi Housing Sector will Recover First in 2011. The top 10 markets for multi housing investment – New York (No. 1), San Francisco and Long Island, N.Y. (tied for No. 2), San Jose, Calif. (No. 4), Los Angeles (No. 5), Oakland/East Bay, Calif. (No. 6), Washington, D.C. (No. 7), Orange County, Calif. (No. 8), Westchester County, N.Y. and San Diego (tied for No. 9), share many characteristics, including generally high housing prices, relative scarcity of land and moderate to strong five-year employment growth forecasts, all contributing to strong apartment demand. The aging of Generation Y (children of Baby Boomers growing into their 20s and early 30s – prime apartment-renting years), will further boost apartment demand across all markets.