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Uneven recovery continues for commercial properties
May 6th, 2011 10:27am
While there continues to be some kind of positive movement in the commercial real estate market, analysts with the Real Estate Roundtable say without improvement in jobs, secondary markets will continue to struggle.
The Roundtable's Overall Sentiment Index for the upcoming quarter remained at 77, showing that some people feel it's unclear that the market will continue to show significant improvement.
"It's all about jobs," said Roundtable president and CEO Jeffrey DeBoer. "Individual segments of the market may be recovering, but until private sector job creation picks up, we will not be out of the economic danger zone.
A survey of commercial real estate executives found that less than a third - 31 percent - said that conditions were "much better" now than they were a year ago. However, that's a gain of six percentage points from the previous report.
The jobs recovery is taking place at varying rates across the country. According to the Texas Workforce Commission, the unemployment rate in the Houston real estate market was 8.3 percent in in March, an improvement compared to the national economy.
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