Search
 

NAI: Strong Fundamentals Shape 2008 Picture

NEW YORK CITY-Global economic growth is driving job growth and demand for commercial space at a pace that exceeds supply.

By Danielle Douglas | Updated on February 05, 2008

Danielle Douglas is associate editor of Real Estate Forum.

NEW YORK CITY-Despite the credit woes rippling through the commercial real estate investment market, with higher cost of capital and stricter lending, healthy demand and tight supply in most global markets will likely attract strong investment in year ahead. This was the prevailing sentiment of NAI Global’s 2008 Global Outlook presentation, held today at the New York Athletic Club in Manhattan.

“We have solid fundamentals throughout the world with high construction costs, high land cost and more stringent criteria limiting the pace of development,” related Jeffrey M. Finn, president and chief executive office of NAI Global. “We are seeing cap rates move up about 50 basis points across all categories, some more some less, but generally that’s the range. That’s pushing down prices, but it’s counterbalanced with increasing rents to hold values.”

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?

NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

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 © 2025 ALM Global, LLC. All Rights Reserved.