Thank you for sharing!

Your article was successfully shared with the contacts you provided.

DENVER-The Denver — and nation’s — commercial real estate markets won’t recover as soon as many believe. That’s the projection of Denver-based Rick Pederson, chairman of the Ross Consulting Group, which is tied to the Frederick Ross Co.

Pederson has traveled the world providing analysis, development advice and other services to clients.

Commercial real estate likely won’t recover until 2003, says Pederson, not as fast as the general economy.

”I know a lot of people are anxious to see a ‘V’ shaped recovery in the economy,” which calls for a sharp recovery following the sharp decline, Pederson told GlobeSt.com following a speech he gave at the Rocky Mountain Commercial Real Estate Expo DU Economic Forecast. The event was attended by a record 1,000 commercial real estate leaders at the Colorado Convention Center.

”My worry is that the commercial real estate economy will lag the recovery in the general economy,” Pederson tells GlobeSt.com. The stock market could enter a bull market long before commercial real estate benefits, he adds.

”Companies need to produce earnings before they add jobs and they need to add jobs before they need new real estate,” Pederson says.

His outlook for Colorado’s commercial real estate reflects soft national conditions, he says. He expects Colorado’s growth to slow to 1.5% by the end of 2002, ”while we’re just about at 3% growth year to date.”

Office buildings will lose 15% in value from their asking prices, and homes will drop 7% to 9% from their top, he says. Overall vacancy rates will rise to 15%, and apartment, retail and industrial vacancies will rise to the 8% to 10% level, he says.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.