US property market outlook for 2003

US real estate professionals are adrift in a quandary on a sea of uncertainty. At the beginning of 2003 there are weak fundamental conditions in the space markets for all property types, while capital continues to pour into the asset class. Transactions in 2002 would seem to indicate that real estate has become more valuable as the result of the recession of 2001 and the ensuing weakness in the US economy that has shown itself as an utter lack of demand for office space and weak conditions in the other property sectors.

The winds of uncertainty have not blown in this fashion since 1986 when office market fundamentals began to deteriorate while institutional funds poured into the transactions market. What should the investor believe? The poor conditions faced every day in the space market, or the ebullience found in the transactions market? Copyright © 2003 Henry Stewart Publications