PricewaterhouseCoopers Report Forecasts Outlook for Four Property Sectors

NEW YORK CITY-The commercial real estate market looks like it is trending toward a point of stability throughout the US, with investment and development fundamentals relatively balanced. Those are the conclusions of a new report published by PricewaterhouseCoopers, based here, and the Appraisal Institute. Rental rates will slow along with income growth from property as the economy slows, predicts the report, which describes how different market sectors may be affected.

Multifamily –Gains in rental rates should continue and vacancies should decline thanks to demand, encouraging investor interest and raising values for the next several years. The ability of multifamily properties to withstand economic difficulties will enable this sector to outperform the other property types covered by the study.

Warehouses–Over the next five years, most of the markets will experience changes in vacancy rates of less than 2% and, as time goes on, will see a modest shift in the supply/demand balance that will result in slight increases in vacancy rates. Market fundamentals should remain positive, nonetheless.