News
CRE Gets Oily
June 29, 2010
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| More than two months after the Gulf of Mexico oil spill, experts have mixed opinions on the impact on CRE. CoStar predicts (based on previous spills and hurricanes) that CRE prices will drop 10% along the Gulf Coast. The Wall Street Journal concurs, especially regarding Florida beachfront hospitality. “The oil spill could push suffering properties over the edge—and scare opportunistic investors from the market,†the WSJ reports. Conversely, economist Peter Linneman believes there will be minimal impact in general—and CRE specifically. REIS director of research Victor Calanog tells us he expects only beachfront retail and seasonal rentals to be affected. For most sectors, “the net effect could be a wash,†especially because of new businesses and households moving in for the cleanup efforts. Luckily for Texas, many experts predict that most of the damage will occur from Louisiana to Florida. |
