The U.S. commercial real estate market is bad and investors expect it to get a whole lot worse, according to a closely followed survey by PricewaterhouseCoopers.
"As investors painfully watch the value of their assets decline, many feel troubled knowing that the ills of the U.S. economic recession have yet to fully impact the commercial real estate industry," starts the first-quarter Korpacz Real Estate Investor Survey of more than 100 investors from real estate investment trusts, pension funds, private equity firms and insurance and mortgage companies.
Many investors are struggling with ways to preserve the value of their investments and maintain ownership in the wake of restricted debt sources, declining tenant demand, and falling values, the survey said.
Real estate investors do not expect the commercial real estate sector to rebound until well into 2010 at the earliest, according to the survey.
"Investors are not expecting this recovery, when it does happen, to be a sharp recovery where it hits bottom and bounces up," said Susan Smith, a director at PricewaterhouseCoopers in the real estate group and the survey's editor.