The Five Most Dangerous Words In Real Estate

Although the U.S. economy appears to recovering from the mild recession, most sectors of real estate will continue to feel the pinch for the next 12 months, according to the Urban Land Institute's (ULI) mid-year Real Estate Forecast. With the exception of housing, real estate performance will likely lag behind the economy, the outlook says, cautioning that rising vacancies coupled with declines in commercial rents and property values have reduced profitability for many owners. Several ULI members provided industry insights for the report, which included a member survey. "This is a market dominated by players with a great deal of capital, short memories, long on hope, and with a strong belief that 'this time it is different' – the five most dangerous words in the English language," says Stanley L. Iezman, president and chief executive officer of American Realty Advisors in Glendale, Calif. ULI’s Real Estate Forecast is available in its entirety online at the link below. The 64-page report is divided into downloadable sections by property type.