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Data shows CRE recovery continues July 6, 2011

Posted by Erik Swanson in Articles, Research/Data, Retail News.

Separately released data from the Mortgage Bankers Association and Costar shows that despite continued weakness in the general economy and in job creation, commercial real estate fundamentals continue to improve in all sectors.

The MBA’s Q1 Databook showed 1st quarter commercial mortgage origination for all property types were up over 1st quarter last year and the index reached its highest mark since 2008. For retail in particular, the data is much the same and reflected the cyclical nature of the CRE market. Although down from 184 in 4th quarter 2010, the 1st quarter index score of 96 was the highest 1st quarter since 2008 (a score of 100 on the origination index equates to an average quarter in 2001). This equates to a 13% increase in loans for retail properties. Full report here.

“The retail real estate market has now experienced eight quarters of positive net absorption” -Costar

Real estate strategists at Costar predict that a second half improvement in the economy will accelerate CRE recovery. Retail sales are expected to increase and retailers should again begin expansion after scaling back new store openings at the end of last year.  Furthermore, with almost no new construction, positive net absorption should continue as retailers move into second and third generation space. See complete Costar article here.



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