Dr. Linneman: Capital Markets Show First Signs of Recovery
Commercial Real Estate To Undergo ‘Massive Debt for Equity Swap,’ Says NAI Global Chief Economist Dr. Peter Linneman
Lending activity will be on the rise as asset values increase and businesses and consumers become more willing to buy and invest, according to a new white paper from NAI Global Chief Economist Dr. Peter Linneman. The Great Recession’s impact on capital markets is examined, as well as how cap rates will impact real estate pricing over the next 18 months.
“We are looking at equitization as a major trend in the next two years,” said Dr. Linneman. “Commercial real estate capital will primarily come from equity sources, not debt, in the short term. In fact, we expect the industry to experience a massive debt-for-equity swap, but the whole process will be a lot slower than most people think.”
Capital Markets Show First Signs of Recovery, NAI Global’s white paper, is Dr. Linneman’s treatise on the impact of how a rise and recovery in asset prices will lead to investors becoming more active, how capital markets will start to show recovery and the impact on the commercial real estate industry.
This latest white paper follows Is This a Recovery?, an examination of proof that the recession has come to an end and that recovery, however slow, is under way. NAI Global’s white papers and research resources are available for free download at www.naiglobal.com under Publications/Articles & White Papers.
Dr. Linneman is also Professor of Real Estate, Finance and Public Policy at the Wharton School of Business, University of Pennsylvania, and Principal, Linneman Associates.
Issued by NAI Global www.naiglobal.com / Published to the Site www.naibaltics.com by NAI Baltics – commercial real estate services in Latvia, Lithuania, Estonia. Your trustworthy partner, advisor and consultant in the Baltics and Worldwide. http://www.naibaltics.com