Real estate sectors in state strong

From the Sarasota Herald Tribune - 9/6/07
Survey says parts of market, like cap rates, remain stable despite housing turmoil
STAFF REPORT

Foreclosures, dropping sales prices and ballooning inventory. That is most of what you hear these days about the Sunshine State's housing market, but a recent survey of real estate experts coupled with data gathered by the University of Florida's Bergstrom Center for Real Estate Studies suggests that the underlying strength of Florida real estate remains.Cap rates, for example -- a measure of the expected rate of return on a property -- have "remained remarkably undisturbed by current real estate problems," the third quarter "Survey of Emerging Market Conditions" said.

If there is growing apprehension about the real estate market, capitalization rates should increase in response to lenders' rising fears about perceived risk, said Wayne R. Archer, the Bergstrom Center's director, in a statement. But Archer acknowledged that a lot has happened since the center did its third quarter work in July." There's a growing feeling of apprehension or caution, but the results from our survey remind us that the underlying markets for real estate in Florida are still in good shape," Archer said. " Owner residential is the only area of real estate markets where there are problems at this time."Apartments, retail, office, industrial and hospitality all remain stable and healthy," he added. click here for full article...

SURVEY CONCLUSIONS

Some key findings of the third quarter "Survey of Emerging Market Conditions" by the University of Florida's Bergstrom Center for Real Estate Studies:

• Cap rates, a fundamental indicator of perceived risk in value, have remained remarkably undisturbed by current real estate problems.
• Single-family development, while at a low level, continues to be regarded as stable by our expert respondents.
• Condominium markets continue to be regarded as in poor condition.
• Rental markets, including apartments, office, industrial and retail, continue to be regarded as basically stable and healthy.
• The overall outlook for real estate investment has declined somewhat, no doubt reflecting the sobered outlook for housing markets.
• The outlook for the survey respondents' own business continues to decline.
• Cap rates, a fundamental indicator of perceived risk in value, have remained remarkably undisturbed by current real estate problems.