A Cushman & Wakefield report released today said that the market will be just fine despite the credit problems.
Anything to worry about with investment sales? Nah, nothing will affect it unless lots of people lose jobs. With leasing? No, it’s fine too unless there’s a “pronounced and prolonged” downturn in financial services, which obviously drives the real estate market these days.
The report is for you to judge, but C&W doesn’t hint about any possibility of dropping office rents (however slight), even though that’s becoming a more popular line of thinking among more real estate people.
But as optimistic as the report is, there’s a limit to it. There is no indication the sales market or leasing side will continue to surge at the breakneck pace it’s traveled over the last 12 months. Still, the report says values, particularly in investment sales, should “remain stable.”