"The decline is moderating a bit--we can hope that the steep declines may be coming to an end--but we are not nearly back to normal," Lawrence Yun, NAR chief economist, tells GlobeSt.com.
The slight easing of credit and introduction of liquidity into the sector is largely the reason, he continues. TALF was extended for a few months beyond the December 2009 expiration date, Yun notes. Also, "there has been a nice gain in the REIT stock price index, which implies that credit conditions may be loosening."
Yun's best guess for commercial real estate recovery? "We'll be bouncing along the bottom for some time, but meaningful gains won't occur until the second half of next year."
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
