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Survey Forecasts Normalized, Reflective Year

CHICAGO-Real Estate Research Corp.'s latest survey shows respondents expect continued high pricing while RERC forecasts a more "normalized" year in 2007.

By Gina Kenny | Updated on May 02, 2007

CHICAGO-The latest survey from the Real Estate Research Corp., based here, shows that respondents believe this year will be similar to last year in many aspects. The survey looks at how respondents feel investment conditions are, expected leasing assumptions, investment recommendations and yield, cap rates and growth rate criteria. “There is still a very strong and positive outlook for commercial real estate,” says Kenneth Riggs, Jr., RERC president and chief executive officer.

There were 30 respondents including pension funds, advisory firms, life insurance companies and real estate investment trusts. Respondents of this quarter’s survey expect more institutional commercial real estate companies to be acquired for their real estate assets and price increases resulting from the acquisitions. Survey respondents viewed investment conditions similar as last quarter for the most part with a slight decrease in perceived conditions for suburban office and an increase in perceived investment conditions for industrial warehouse space. Industrial “has always been stable and less volatile,” Riggs says.

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