Economy on an upswing

Commercial property transaction volume will reach $430 billion by 2016, according to an Urban Land Institute report, which would exceed the volume for 2006.

The ULI/E&Y Real Estate Consensus Forecast report, a multiyear outlook based on opinions from 39 of the industry's leading economists and analysts, actually projects steady growth in commercial real estate fundamentals and housing. The ULI Center for Capital Markets and Real Estate prepared the report in conjunction with consulting firm EY, formerly called Ernst & Young.

“Respondents to the Consensus Forecast survey project consistent growth in the real estate industry, bringing some key factors back to pre-recession levels and others moderating to long-term averages,” ULI Center for Capital Markets and Real Estate Vice President Anita Kramer says in a release. “Fundamentals beyond multifamily continue to improve with the retail sector now joining in. This overall outlook for real estate is supported by expected ongoing improvements in the economy.”