The Hunt for Product Lessens Summer Market Doldrums

摘要

Going into the summer of 2005, the real estate market continued to be healthy. Capital flows have been strong and should remain so over the near term. While not without risk, the economic recovery appears to be on track, suggesting the potential for increasing demand for space. In a growing number of markets, fundamentals have begun to improve, albeit at a tempered rate. This improvement can be attributed in part to the fact that construction activity has remained largely in check. This situation is likely to hold over the near term, although some markets can expect increases in construction. In this environment, transaction volume should remain solid, with sellers still maintaining the upper hand for a while. Given the competition for product on both the debt and equity side of the market, there is little risk of summer doldrums as the market seeks its natural bottom and players posture for the next wave of prosperity.