The commercial real estate industry will continue to grow next year across most property types and markets, according to Deloitte.
The company has prepared a report outlining its 2015 outlook where it states that access to capital will be another strong driver in the commercial market.
Bob O’Brien, the US real estate services leader, stated that REITs are seeking opportunities to become involved in development and they are leveraging their access to capital to achieve this goal.
Mr. O’Brien also stated that US equity REITs are starting to diversify their portfolios by looking outside their borders for international opportunities.
During the global financial crisis, most REITs made the decision to pull back from international expansion. Now, Deloitte is seeing some expressed interest as well as return to global investment.
Financing is now available through both domestic and international sources, and is likely to support growth in transaction activity and asset pricing.
Competition is continuing to intensify for quality assets. Transactions involving distressed assets are expected to continue to decline, according to Deloitte’s forecast.
Vacancies and rents are expected to improve across property types. According to the report, development activity coming online may have an impact on this, especially in the office market.
More redevelopment of existing properties to make them more competitive, as opposed to new development, is expected in the coming year.