Speed building for commercial real estate recovery

A new report by Deloitte says that the national commercial real estate market is showing continued signs of turning around, and a recovery may be around the corner.

Bob O'Brien, Deloitte's vice chairman and real estate sector leader, said that while investors are still looking for a sign that "fundamentals have hit bottom and started a sustainable recovery," there have been a number of optimistic signs that have given hope to the market, such as increased transactions and deal flow.

Among the many issues still facing the market, according to the report, is the continuing practice of many lenders who have chosen to "amend and extend" their commercial loan terms to put off the foreclosure process, which has made it difficult to sense where the bottom of the market may be.

Other obstacles to the recovery of the commercial real estate market include continuing uncertainty among investors and lenders, and the slowly recovering economy, which may prevent rapid gains in the market.

A number of recent reports have pointed to the Houston real estate market as one of the strongest in the country. The Emerging Trends report earlier this year from the Urban Land Institute and PriceWaterhouseCoopers listed Houston as the eighth-best market nationwide.