26.11.2012 - Is global real estate entering a positive cycle?
In the view of Standard Life's head of real estate research and strategy, Anne Breen, the real estate pricing environment has changed and this provides greater clarity on the outlook for many markets. Pricing relative to government and corporate bonds is attractive relative to historical levels, while the outlook for economic expansion and tenant activity is also improving in Breen's view. As Standard Life's analysis shows, real estate is typically a function of the economy, in that rents and rent inflation are driven by the balance of tenants looking to lease space. As the last cycle did not include a construction boom for commercial real estate there is now less spare capacity, meaning any uptick in economic activity could flow through to rent increases...............................................Full Article: Source
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