The U.S. CRE recovery, although slow, has been visible in improved fundamentals, capital availability, asset pricing, and transactions. In fact, REITs as an asset class continues to outperform others, primarily due to higher liquidity and relatively easy access to capital markets. However, the CRE recovery appears to be unsteady, with increased “caution” given the nation’s stalled economic recovery, which is due, in part, to sovereign debt problems and economic stagnation in Europe as well as slowing growth in emerging markets such as China and India. In addition, the minimal development activity taking place does not bode well for long-term growth. Given the limited support from the external environment, CRE players should focus on alternate mechanisms to grow revenues, margins and retain tenants.
Source : Deloitte