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Soft Landing May Be Harder Than Expected Due to Energy and Credit Concerns

SAN DIEGO-Tighter credit availability and skyrocketing energy costs have raised serious questions as to how the "soft" landing will impact real estate in 2001, according to local investment specialists.

By Randyl J. Drummer | Updated on February 13, 2001

SAN DIEGO-Tighter credit availability and skyrocketing energy costs have raised serious doubts that real estate market in SoCal will experience the so-called “soft” landing that had been anticipated for 2001, according to local investment real estate specialists.

While 2000 was a healthy year for the commercial real estate investment market, with rising values and strong transaction volume, it ended with a great deal of uncertainty, according to Robert A. Freund, VP and director of investment services for Colliers International.

Although the current slowdown is sobering, San Diego’s strong fundamentals will maintain its position as one of the most attractive investment climates in the country, according to Freund. He predicts that vacancy rates across product types may rise modestly but should still remain near the current record lows.

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