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Follow on Google News | Pricing Upturn Seen in Retail, Apartment SectorsCCIM and RERC see break in declines; 2010 the time to buy commercial real estate
By: CCIM Institute "The latter part of 2008 and all of 2009 were definitely the shock years, and we’re looking to 2010 as the recovery year,” said Richard Juge, CCIM, the 2010 president of the CCIM Institute. “We will see more activity, perhaps not in gross dollar levels, but in the volume of deals that close in 2010. This is the time to buy." Additionally, CCIM and RERC say that weighted average capitalization rates for the office, industrial, retail, and apartment sectors increased by 20 to 30 basis points in the fourth quarter. “This is also part of the market re-pricing of risk, as cap rates expand to provide a more attractive income component to the investment,” The groups’ RERC/CCIM Investment Trends Quarterly report also shows that 12-month trailing transaction volume increased slightly in the apartment and retail sectors, hinting that volume also may be starting to bottom out for these property types. However, transaction volume for the office and industrial sectors continued to decline, but at a much slower rate in the fourth quarter than in the previous three quarters. “We keep searching for a bottom on prices, but it is an uneven landscape depending on the property type and investor willingness to mark-to-market their properties,” “This is the first step toward recovery, and the market is ready to move on and prepare for the next phase, which is capital moving in to buy attractively- About the Survey Published quarterly, the RERC/CCIM Investment Trends Quarterly report provides timely insight into transaction volume, pricing, and capitalization rates for the core income-producing properties. The RERC/CCIM Investment Trends Quarterly is produced by the Chicago-based Real Estate Research Corporation (RERC) in association with and for members of the Chicago-based CCIM Institute. # # # Since 1969, the Chicago-based CCIM Institute has conferred the Certified Commercial Investment Member (CCIM) designation to commercial real estate professionals. There are more than 9,000 CCIMs in 1,000 markets in the U.S. and 31 additional countries. End
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