Tampa, Florida Realtor Participates In 2009 Commercial Real Estate Survey
According to a recent 2009 survey by Marcus and Millichap Real Estate Investment Services, we can expect further decline in investor confidence in commercial real estate even as the appetite for property acquisition remains strong this year.
A Tampa, Florida realtor who participated in the survey noted that the majority of investors polled expect commercial real estate values to decline further in 2009, with 67 percent expecting prices to correct themselves, at least 10 percent on average and 32 percent predicting the price to decline approximately 15 percent or more.
These results were released in early January and revealed the lowest confidence level since the survey began five years ago. Of the 1129 participants – private and institutional real estate investors polled, from across the United States, 51 percent of the investors plan to increase commercial real estate allocations in 2009 compared to 62 percent a year and a half ago and a high of 74 percent in 2005.
It is interesting to note that a little more than half are still planning to increase their commercial real estate holdings despite the significant drop-off in acquisition plans from 2005. This speaks to the opportunity that many investors expect prices to adjust.
Tampa realty notes that this is a lack of ‘panic’ in the market when only 11 percent plan to reduce their real estate portfolios in 2009.
Availability of financing was at the top concern of approximately 60 percent of those commercial real estate investors surveyed; this was followed by the credit worthiness of tenants at 29 percent and at 28 percent was the rising vacancy rate.
Twenty-two percent of investors believe that this is the right time to purchase property, while 64 percent believe it is the right time to hold and only 14 percent believe it is the right time to sell commercial property, this according to the survey.
Over 50 percent, 59 percent to be exact, do not need to refinance their portfolios in 2009 and only 12 percent indicated the need to refinance 20 percent or more of their holdings. Another 59 percent of the participants in the research study expect all-in mortgage rates to be higher one year from now and 74 percent of respondents believe financing will be difficult or more difficult to obtain.