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MAS Forcast for Commercial Real Estate 2011
Our Forecast for the commercial real estate industry, 2011 will look better than 2010 – at least for the second half of the year.
Mr. Kambiz Merabi contains some of the best thinking you will find about what is happening in the world of commercial real estate. He says that 2011 will go down in history as the foundation year for a new era of wealth-creation in commercial real estate, then 2012 would start to inch up than by 2015 we will surpass the peak of 2006-2007 in Commercial Real Estate in the US .
Mr Merabi is CEO and a principal of Merabi & Sons, and 1370 Realty Corp., which are commercial real estate development and investment firm based in Los Angeles, California. He has been a real estate investor and developer for a long time with experience in luxury class A residential, and office buildings.
His annual Forecast with his research team are one of the most anticipated reports of the year. It covers the economic factors that affect real estate values, performance, and financing. This Special Report opens with a review of overall economic and financial conditions and the forecast.
Kambiz & his staff break out the data for each region of the country and drill down into the property-level data on apartments, shopping centres, and office buildings.
Kambiz explains what to expect in the capital markets and why and issues a capital demand alert going forward that will affect the price and availability of loans nationwide.
He details the sectors that are poised for growth, the sectors destined for more pain, and how to identify true opportunities.
Kambiz has ridden the same roller-coaster we all have in the last couple of years, and he brings his experience, research skills, and thoughtful opinions to his friends, and network with a forecast that rises to the level of actionable intelligence.
The Forecast is a massive amount of information: 37 pages packed with valuable information based in the facts, and detailed figures, charts and data. Kambiz says it's the one time each year he "shows his work."*This is the same information he uses to chart his own company's annual strategic plan that guides his investment portfolio decisions. *
The market is now through the worst of the downturn! The 2011 Commercial Real Estate Forecast details the conditions we're facing, where opportunities can be found, and how to choose the investments with the best outlook for growth over the 2011 year.
According to Expectations & Market Realities in Real Estate 2011, a report published collaboratively by Real Capital Analytics (RCA), Deloitte, and Real Estate Research Corporation, “Commercial real estate investors appear to remain cautious with their return expectations during these uncertain times, and are weighing the risks presented by the economy and the capital markets.”
The 2011 outlook report, released in December of 2010 by MAS, predicted that commercial real estate investment is likely to continue to be favored in comparison to other investment vehicles for the foreseeable future, due to its transparent and stable nature. Yet the sector also faces headwinds from a steep refinancing mountain coming in the 2011 year, as well as a sluggish US economy and low job growth.
Risk aversion was a main topic of the report, with contributors discussing what risks are currently present for the commercial real estate sector, and how best to avoid them.
Mr. Merabi says as an investor, he is looking only for class A building in 2011, however Property investors, meantime, will be looking mostly at the very best Class A properties or the most bargain-basement challenged ones, and not much in between.
"Although 2011 will be somewhat better than the past year, we will experience much of the same in 2011 with economic growth being tepid and the job market remaining a major impediment to realizing significant increases in commercial real estate demand," the report notes.
Cassidy Turley plans to present its outlook for the year at an event Thursday afternoon at Old National Centre.
A few highlights:
For a more extensive summary of the collaborative report, or the detail report please contact The Merabi & Sons Los Angeles Offices:
By Phone: Mr. Gibran Escobar 818-817-0006 Ext 21