The forecasts are rosy for the CRE market, but systemic headwinds still exist, making this a tough sector to bank on profits.
By Kit R. Roane, contributor
Until recently, the smart money saw commercial real estate as the next asset class to do a number on the economy. Now some believe it is turning into a feather in the recovery's cap. But every bet has its risks -- and in this case, better days may be farther into the future than many investors would like.
The bullish case for the commercial real estate market is that the bad news is baked in, and what's left will likely dissipate as the economy gains steam. Wells Fargo (WFC) sees commercial real estate actually contributing to growth by the second half of this year, driven by more interest in leasing, steadying rents and increasing sales...
http://finance.fortune.cnn.com/2011/01/03/why-commercial-real-estate-is-still-a-gamble/
By Kit R. Roane, contributor
Until recently, the smart money saw commercial real estate as the next asset class to do a number on the economy. Now some believe it is turning into a feather in the recovery's cap. But every bet has its risks -- and in this case, better days may be farther into the future than many investors would like.
The bullish case for the commercial real estate market is that the bad news is baked in, and what's left will likely dissipate as the economy gains steam. Wells Fargo (WFC) sees commercial real estate actually contributing to growth by the second half of this year, driven by more interest in leasing, steadying rents and increasing sales...
http://finance.fortune.cnn.com/2011/01/03/why-commercial-real-estate-is-still-a-gamble/
