January 14, 2008
The four core property categories are clustered near the peak of the real estate cycle, but if a recession takes hold as many analysts expect, vacancies could begin to rise in the next one or two quarters as absorption cools and the construction pipeline continues to deliver new product. Decelerating consumer spending would dampen retail leasing activity; layoffs could push net absorption of apartments and office space into the red; and falling imports could reduce tenant and owner-user demand for warehouse and distribution space.
Robert Bach currently serves as senior vice president of research & client services at Grubb & Ellis Company in Chicago, Illinois and he can be contacted at (312) 698-6754. For more information about Grubb & Ellis Co., go to www.grubb-ellis.com.