ONCE BURNED: Low Rates, Cheap Capital Raise Concerns Over Possible Return of Bubble-Era Pricing via CoStar Group

Even as the economy appears to be gaining traction thanks to the flood of low-cost stimulus money that has flowed through U.S. capital markets, commercial real estate executives and economists vacillate between wonder and dread.

In DLA Piper’s annual temperature-taking of the CRE industry, 85% of senior executives at commercial real estate firms surveyed reported having a bullish outlook for the year ahead, reversing a far more pessimistic view two years ago at the dawn of the economic recovery. Driving that optimism for 56% of the executives is a combination of current low interest rates and abundant debt and equity capital.

At the same time, just 40% named the improving U.S. economy as a reason for their bullishness.

Read more...ONCE BURNED: Low Rates, Cheap Capital Raise Concerns Over Possible Return of Bubble-Era Pricing - CoStar Group