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Pessimism is permeating the commercial real estate market, according to a well-followed national survey on the state of the industry conducted by LoopNet, an online listing service and broker network.
One standout response in the quarterly poll: The number of industry players, from brokers to property owners to investors, who think the market will recover in 2010 dropped from 66% in July to 50% in October.
Meanwhile, respondents who believe a recovery won't take place until at least 2011 is up to 46%, from 33% in July. Even worse: Now one in five respondents say the industry, at least from a volume transaction standpoint, won't make a comeback until 2012.
The outlook on pricing is similarly glum. While 20% of the property owners that responded to the survey say prices have already hit bottom, other industry participants aren't as confident. For example, 10% of the respondents worry that the market won't see a price bottom until 2012.
The biggest barrier to a commercial real estate market recovery? No surprise, the survey says that would be a lack of access to financing. The second biggest barrier, according to the survey, is high asking prices on properties.
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