U.S. Rental Expectations For Commercial Property Sector Still In Decline According...

U.S. Rental Expectations For Commercial Property Sector Still In Decline
According to Survey

NEW YORK, May 19 /PRNewswire-USNewswire/ -- Capital rates for commercial
property continued to fall in the first quarter of 2009 with the United States
and countries around the world hit by falling rental rates, according RICS's
Global Commercial Property Survey. The quarterly survey tracks sentiment among
property professionals internationally.

The United States saw capital values - an investment measure that converts
rent into a capital sum - drop significantly, with U.S. real estate
professionals among the most pessimistic of all respondents globally regarding
the near term price outlook. Respondents expect little easing in the pace of
price decline in the coming three months. Globally, the upward shift in yields
has moderated across most regions, although it increased in pace in the United
States.

Weaker tenant demand has led to faster rises in reported available space,
which has compounded the gloom toward the rental outlook for commercial space.
Rental expectations in the United States and Canada in the first quarter of
2009 are still shown to be weakening but have eased off the drop seen in the
fourth quarter of 2008 by nearly half. Still, the rising available space
across every region is forcing commercial real estate agents to offer
increasingly larger incentive packages in order to secure a deal.

Despite the rental gloom, the rapid re-pricing in some markets may be
encouraging investor interest.

"Across the United States, we're seeing lenders taking their lumps, writing
down assets instead of hanging on to now outdated value expectations," said
Matt Bruck, Managing Director, RICS Americas. "The survey reveals that
activity in commercial space continues to be slow. Traditionally activity in
commercial space lags behind trends in residential. The sentiment among
property professionals in the U.S. is that even if we're near the bottom, the
recovery over the next two years will be minimal. Some of our members are
saying that local investment is starting to move as local and regional banks
were less dramatically affected by the global crisis."

For the full report, please click here:
(http://www.ricsamericas.org/files/editor/RICS_Global_Commercial_Property_Survey_Q1_2009_FINAL.pdf)

About RICS & RICS Americas
RICS (Royal Institution of Chartered Surveyors), with headquarters in London,
is the leading organization of its kind in the world for more than 100,000
professionals in property, land, construction and related environmental
issues.

RICS Americas, based in New York and covering North, Central and South America
and the Caribbean, has more than 3,000 members in commercial and residential
development, construction management, brokerage, planning and finance,
valuation and fine arts appraisal. For further information visit
www.ricsamericas.org or e-mail ricsamericas@rics.org.

SOURCE RICS Americas

Barry Schwartz of Schwartz Public Relations, +1-212-677-8700 x18, for RICS
Americas