NEW YORK CITY-A look at fundamentals suggests office investments will fare well in the long run despite the plunge in office investment throughout the US, according to a new report from Cushman & Wakefield.

The C&W study, “Short-term volatility, long-term stability,” finds that, barring a prolonged economic downturn, fundamentals in leading US office markets will remain sold and will “give owner/investors the upper hand once again when the economy rebounds.” The report acknowledges the hits that the office investment arena has suffered since its heyday of 2006-07, which was the all-time peak for investment volume in the US office market. The researchers also point out that office investment transaction volume today “is the lowest it’s been in nine-plus quarters.”

Despite continuing problems in the office market and the economy in general, the report cites three major factors that bode well for US office investors in the long run and explains why it is better positioned than in previous cycles to weather a downturn: solid supply-side fundamentals, strong tenant balance sheets and the diversification provided by the global economy.

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