Real Estate Markets 'Recovering from the Recovery'
By Vittorio Hernandez | July 1, 2014 1:42 PM EST
A joint research conducted by PricewaterhouseCoopers (PwC) and the Urban Land Institute (ULI) claimed that 2014 will be the year when real estate markets "recover from the recovery," as buoyed by steadily growing demand for commercial real estate properties.
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The research found that the commercial real estate market has reached "an inflection point where valuations will no longer be driven by capital markets."
It also revealed that while economic recovery remains slow and while growth drivers in the commercial real estate market may not be as earth-shattering, they are enough to propel market rebound.
One fund manager who participated in the research noted that the 2.5 per cent gross domestic product growth during the second quarter of 2013 may not be as significant, but it is enough to boost real estate demand.
Another participant of the study, an economist, stated, "We have a new paradigm here. It is not the kind of recovery we have seen before with 250,000 new jobs a month. It's a recovery with 100,000-plus jobs a month."
The research identified occupancy and rental rates, and property enhancements as top revenue drivers for commercial real estate.
Titled Emerging Trends in Real Estate 2014, the research provided insights on issues and trends dominating the real estate market across the United States, Canada and Latin America.
ULI and PwC surveyed over 694 individuals and interviewed 377 more from the real estate sector for the research.
The research participants hailed from a variety of entities catering to the real estate market including private property investors and developers, real estate consultancy firms, asset managers, banks and lenders, REITs and publicly traded companies.
In an interview with Fox Business, PwC real estate advisory practice head and co-founder Mitch Roschelle shared that positive sentiment for commercial real estate was up from 18 per cent in 2010 to 68 per cent in 2014.
"That's about as bullish as it can get," Roschelle said.
Roschelle also noted that as a result of the uptrend, commercial investments are expected to rise as well.
He said warehouses, office developments and new retail establishment projects are expected to crop up to support growing communities as an offshoot of the trend.
As more people shop around for new properties to rent or purchase, real estate agents could benefit from online marketing platforms to reach their target audience. RealBiz Media (OTC: RBIZ) is one company offering marketing tools for real estate agents and brokers to meet the said growing demand in real estate.
Nestbuilder, the company's primary product, for instance, is being used by over 350,000 real estate agents in the United States to create interactive listings and to network with other real estate sales professionals and buyers.
Its Virtual Tour Program, meanwhile, allows real estate agents to give would-be homeowners and renters a tour of listed properties without leaving their office or humble abode.
The virtual tours are syndicated to top real estate websites like Trulia.com, Realtor.com, and Zillow for maximum exposure.
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