Deloitte’s latest report, assembled by the National Association of REALTORS® (NAR), Deloitte, RERC LLC, and Situs (RERC’s parent company), examines current levels of economic growth, job growth, and consumer buying power.
With respect to commercial real estate investment, interest rates are still low and fundamentals continue to improve. Volume and pricing have been increasing, especially for high-quality properties in the coastal markets, but we have also seen high values and prices in more secondary and tertiary markets. Returns in the form of both income and appreciation are expected to remain quite attractive in 2015 compared with many investment alternatives.
…we expect commercial real estate prices and values to possibly increase even more during 2015, given the relative expected returns, the general transparency of commercial real estate in that it is relatively easy to understand, and the perceived safety of this asset class compared with many investment alternatives.