NEW YORK CITY-Grubb & Ellis executives are not expecting arecession or major down turn in the commercial real estate market,but say that things will level out. In most sectors, this will leadto an increase in cap rates, flat rental and vacancy rates and abit of uncertainty, said Robert Bach, the Chicago-based real estateservices firm's senior vice president of research here at a 2008forecast meeting.
“It's an interesting time, especially in light of the last fewyears,” he said. “Things have changed, definitely, and no one knowsfor sure what is going to happen.”
So far, lenders have pulled back due to previous poor investmentdecisions and waning confidence in the market, Bach said. Heexpects GDP growth, at 2% this year, to slip to 1.8% in 2008,impacting individual sectors similarly.
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