Probably so.
According to CoStar, the national Commercial Real Estate data and research company, for the first time since mid-2007, all four primary property types (Office, Industrial, Retail, and Multi-family) showed an increase in pricing in Q4, 2010.
This across the board increase indicates increasing confidence on the part of institutional and other professional Commercial RE investors. Capitalization rates seem to have leveled off in the 9%-9.5% range, stabilizing sales prices. The exception remains Apartments, which continue to trade at about 6% cap rates, keeping sales prices high.
In the Portland area market, existing vacancies are beginning to fill up, resulting in firming lease rates. Suburban Office Class B rates, for example, seem to have bottomed out at about $15.00 per sf, full service, compared to $17-$18 only 18 months ago. During the same time period, most good quality Industrial space dropped from $.38-$.42 per sf, NNN, to about $.35 today.
Landlord concessions are becoming less generous as vacant space is absorbed, though 2-3 months of free rent on a 5 year lease can still be gotten by credit-worthy Tenants.
Outlook: If your company has been holding off moving because you were waiting for lower prices, it's time for action. Purchase prices and lease rates appear to have hit bottom and are inching up.
Economy has Bounce in its Step:
Optimism for 2011: Experts forecast the sharpest growth since 2000, though housing and hiring still drag
(The following condensed article is by Jeannine Aversa of the Associated Press)
Expectations for economic growth in 2011 are turning more optimistic now that Americans will have a little more cash in their pockets.
A cut in workers' Social Security taxes and rising consumer spending have led many economists to predict a strong start to 2011.
Analysts are predicting economic growth next year will come in close to 4 percent, a marked improvement from the 2.8% growth of 2010. This would be the strongest showing since 2000, and enough to bring the unemployment rate down to around 9% from its present 9.8%.
Americans have more reasons to be confident. Stock prices are rising, helpiing Americans regain vast losses in wealth suffered during the recession. Job insecurity remains a problem, but the hiring market is slowly improving. And loans aren't as difficult to obtain for those with solid credit histories.
