Grubb & Ellis Co., a provider of integrated real estate services, released its 2006 North America Real Estate Forecast, which indicates commercial real estate should have another healthy year as job growth benefits the office and retail markets and an abundance of capital continues to infuse investment sales. Robert Bach, the company’s national director of market analysis, said conditions will be similar to 2005; though he cautioned there are imbalances in the economy that could slow growth as early as the second half of 2006 or even bring the expansion cycle to an early conclusion.
The forecast identifies San Diego as an area of particular interest for investors in 2006. That market is expected to be very active as demand for all types of commercial real estate stays strong. For example, average asking rents for class-A office space are expected to surpass $3.20 per square foot per month by year-end, up 10 percent from fourth quarter 2005, placing San Diego near the top of all markets ranked nationwide.
Complete copies of the national and regional forecasts are available at www.grubb-ellis.com.