Commercial Real Estate Market Improving?

By: Daniel M. Drewry

Cory Schouten with the IBJ recently interviewed Jeff Henry, the managing partner of Cassidy Turley, in conjunction with IBJ’s October 8, 2010 Commercial Real Estate & Construction Power Breakfast.  Mr. Henry reported that after several down years, we can finally see the light at the end of the tunnel and all sectors of the commercial real estate market are improving.  However, he notes that the market is barely off the bottom and that we should expect a gradual, rather than a straight line, increase at both the local and national levels.  The industrial and medical sectors have been leading other sectors in terms of occupancy and growth rate, with medical expected to see the most growth in the next three to four years.  Mr. Henry also discussed issues concerning the valuation of distressed properties and the current status of the auction market, the latter of which was featured in this week’s print edition of the IBJ.  For the full interview with Jeff Henry, go to:

This is a much needed nugget of good news for an industry that has obviously been suffering.  It also coincides with recent indicators in the construction industry suggesting a gradual uptick in activity and outlook for 2010.  The question for contractors is will the relief come quickly enough? In our next entry we will look at the recent ENR Top 600 Specialty Contractors Survey results and discuss some of the issues (and contrasting bleak predictions for the next year) facing many subcontractors.