The US economy: a mid-year review and outlook

Abstract

At mid-year the US is experiencing a weak economic recovery that offers little hope of an early rebound in the real estate space markets. Hotel and office properties were the hardest hit by the slowdown, but apartments and warehouse properties have been affected as well. Conversely, the real estate capital markets are quite strong with no evidence of price weakness. The apparent dichotomy may reflect a repricing of real estate to bring it more in line with its long run risk premium. If so, today's prices may look like bargains in a year or two. Copyright © 2002 Henry Stewart Publications.