"Real estate is well-positioned for a slowing economy with low nationwide vacancy rates and markets in balance, and we expect little adverse impact on rents and values," Petrovski added. "In 2001, those 9% to 12% returns will look quite attractive compared to alternative investments."
Locally, Heller foresees more rehabs of office space in a market now seeing historic low vacancy rates. Petrovski expects continued demand for Class C+/B- buildings for upgrading to Class B-/B+ products.
National trends forecasted by Heller include a growing demand for luxury properties, continued interest in rental property development, more consolidation of REITs, more modest CMBS volume, opportunities in niche sectors such as telecom hotels.
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