NMHC – Our message about the long-term strength of the apartment sector was reinforced this week with the release of the annual Emerging Trends in Real Estate report by the Urban Land Institute and PricewaterhouseCoopers LLP. The report, which says that commercial real estate markets will bottom out in 2009 and flounder for much of 2010, singles out apartments as their number one “buy” recommendation. According to the industry experts surveyed for the research, commercial real estate faces its worst year since the 1991-1992 industry depression, with ongoing drops in property values, more delinquencies and foreclosures and crimped property cash flows.
However, the authors say that distress in the housing market is benefiting apartments and that moderate-income apartments in core urban markets near public transportation offer the best buy in the commercial real estate sector for the second year in a row. In its “Best Advice for 2009” section, the report recommends a return to basics approach in property management, staffing up asset managers and leasing pros, going green to cut energy expenses, buying or holding multifamily, purchasing distressed condos near public transportation and investing in Real Estate Investment Trusts, as they will lead the market’s recovery. More information is available at http://tinyurl.com/5gkssc.