The “New Normal” in US real estate

Dear Global A Group follower, we thought you would appreciate some comments and sharing of the ULI’s “Emerging Trends in Real Estate 2012” survey on the U.S. real estate market. In the US, challenging times are here to stay and we continue our adjustment to the “new normal” as we have yet to really understand what that means, and how you can do business in such an environment. Due to the continuous need for deleveraging at the household and the governmental level, and therefore, the limited spending capacity, the economy is likely to remain stagnant for years to come. Only once the fiscal and debt impasse have been resolved, a more clearer and optimistic tone will be justified. Capital remains on the sideline as rebalancing has not been completed and sometimes not even started. Opportunities do exist where such rebalancing is indeed possible through discounted pay offs and repositioning, and the most favorable property types are multifamily and medical related real estate. Hospitality will do well in only certain markets, and the same applies to office, retail and industrial as the continuous downsizing has soften demand tremendously. Please contact our New York based partner Robert Meulmeester for more details and please click on the link to download the survey and enjoy ! ULI Emerging Trends in US Real Estate 2012