PricewaterhouseCooper (PwC) and the Urban Land Institute (ULI) released the Emerging Trends in Real Estate 2012 survey and forecast. The report predicts a "slowing, grind-it-out economic recovery" following a period of mostly sporadic growth, confined largely to a few real estate markets. Survey participants predict that 2012 will see an increased supply of properties for sale; however, due to economic uncertainty, interest among buyers may diminish.
"Job creation is clearly the critical ingredient for a sustained recovery in commercial real estate and the market participants we surveyed uniformly struggled to identify new employment engines. As a result, businesses are focused on squeezing profitability out of productivity gains, and families forced into belt-tightening are using less square footage, which follows ‘The Era of Less' sentiment we forecast last year," said Mitch Roschelle, partner, U.S. real estate advisory practice leader, PwC. "In 2012, investors expect pricing to level off in the top markets – and overall ‘buy' sentiment will subside, selling appetites will increase, and more owners will hold until the economy untracks. This is part of 'the new normal' as investors are coming to grips that they may not be selling for more than they paid."
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