Friday, September 19, 2008

From the Tampa Bay Business Journal - by Steven Ekovich

The current housing downturn and capital markets crisis have caused investors to worry about the commercial real estate market and remain on the sidelines. Despite these concerns, which have been compounded by negative media reports, fundamentals for most property types are still relatively healthy, except in some sectors of Florida’s property markets.

The fallout from the housing market is placing a strain on fundamentals in the Tampa commercial property market, driven primarily by ongoing job losses and loss of consumer confidence. But long-term fundamentals are expected to remain healthy.

In fact, there are signs in certain sectors recovery is already under way. In addition, right now there are excellent opportunities for buyers because assets are being offered at a discount to the prices of a few years ago.

Putting it all in context

The most pervasive theme of U.S. economic performance in the past 20 years can be summed up in a single word: resilience.

Steven Ekovich is the regional manager of the Tampa office of Marcus & Millichap Real Estate Investment Services. He can be reached at sekovich@marcusmillichap.com or 813.387.4700.