Outlook brightens for commercial real estate investors

Oversupply of available space creates buyer's market in many locales

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Continuing good economic news and signs of increased activity among companies looking to add new space are helping to convince real estate investors that better days are ahead, according to the PricewaterhouseCoopers second quarter 2004 Korpacz Real Estate Investor Survey released today. "While soft market conditions are likely to linger for the remainder of 2004 and into 2005, it is apparent that real estate investors have become more optimistic now that the worst seems to be behind us," said Peter Korpacz, director, PricewaterhouseCoopers' Global Strategic Real Estate Research Practice. "Nevertheless, many markets remain saturated with available space – thereby offering tremendous opportunities for tenants looking to either upgrade their space or relocate." While there has been a recent upswing in "space shopping" by tenants in a number of markets, there appears to be no great urgency to lock into specific deals – a situation that keeps rental rate growth to a minimum a...