PwC Survey: Commercial Real Estate Investors Optimistic


Commercial real estate investors are cautiously optimistic about an industry recovery despite recent disappointing labor reports and falling home prices, according to data from PricewaterhouseCoopers’ second quarter PwC Real Estate Investor Survey (formerly known as the Korpacz Survey).

Average overall capitalization rates, which are initial returns anticipated on an acquisition and a reflection of an investment’s anticipated risk, declined in all of the property types tracked in the PwC survey. Decreasing capitalization rates signal a recovery. The apartment sector is leading the industry recovery followed closely by the resurgent office market, which had a slow start. The steepest declines reported in the quarterly survey are in the national central business district and the national suburban office markets.


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