At this hour Sacramento's real estate community is gathering at the downtown Sacramento Sheraton to hear the 2010 forecast from capital-area executives of commercial real estate services firm CB Richard Ellis. Warning: next year still looks a lot like this year.
Details are in this 30-page report.
Four highlights:
- Land: Commercial land development will almost stop as commercial users take their pick of cheap vacant space. With so few commercial land sales, it's hard to even define prices.
- Apartments: Rents will fall still more with rising unemployment and a plentiful supply of single-family homes for rent. Apartment owners with heavy debt will fall, making 2010 "a buyers market, bringing "contrarians off the sidelines."
- Offices: Rents will remain flat or fall more. Downtown Sacramento buildings, still in demand by a private sector interacting with the state Capitol, will outperform the rest of the market.
- Stores: The 14 percent vacancy rate in area shopping centers will begin to ease with no new construction and retailers competing for limited space. New tenants will bet on a California recovery and take advantage of cheap rent.
- Google Image Photo by CB Richard Ellis
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