NEW YORK CITY-The slow pace of development following the boom-bust years of the economic downturn are actually having a somewhat positive impact on pricing in 2012. Speakers during the second annual Urban Land Institute “Real Estate Finance and Investment” conference agreed that while the commercial real estate market is seeing very little new construction, property values for existing buildings are going up—though headwinds remain.
“The most important thing are fundamentals: net operating income, rental level growth and occupancy. NOIs are actually moving upward quite nicely, and they will continue to move up nicely unless we hit a traumatic double-dip recession,” said Stephen J. Furnary, chairman and CEO, Clarion Partners, who keynoted the two-day event at the Sentry Conference Center in Midtown. “We have a lot of capital available to real estate, so it’s not capital starved, but on the other hand, the real estate market is actually improving.”