Market Overview

Office and Health Care Real Estate are up in Demand

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A study by consulting firm PwC showed that office and health care real estate are very much in demand. The study also showed that investors remain bullish on the real estate sector.

 

In a survey of real estate investors released last week, PwC said that the home office real estate segment is showing consistent upward trend. Most geographic markets are expected to be in either the recovery or expansion phase of the real estate cycle during the next four years.

 

Meanwhile, respondents reported higher occupancy levels, greater leasing activity among both existing and prospective office tenants, and better control of negotiations with tenants and buyers.

 

Mitch Roschelle, partner with PwC and leader of the firm's United States real estate advisory practice, noted that office-based jobs have returned to pre-recession levels. Additionally, they have grown consistently on a monthly basis during the course of the last year. At the same time, supply has remained muted.

 

“I think we’re at a great point because capital is flowing into U.S. real estate at perhaps a record level, fundamentals are gradually improving and the demand for space is driving rents up,” he said.

 

Of the 17 major cities covered in the survey, Washington, D.C. was the only one that respondents don’t expect to see either recover or expand in the next four years. Of the 57 office metro areas studied, 50 were reported to be in either recovery or expansion, compared with 42 areas two years earlier.

 

The survey also revealed  “enduring investor optimism and a seemingly limitless appetite” for assets in the national medical office buildings (MOBs) market, PwC said.

 

Roschelle added that the MOB sector is currently enjoying “really, really strong fundamentals.” In addition to an aging population, the sector is being supported by the increase in medical specialization and doctor visits, according to Roschelle. He added that some suburban office properties are being repurposed as MOBs.

 

“It looks like an interesting play,” he said.

 

In other sectors, the survey found that investors see retail continuing its slow recovery as demand continues to outpace new supply. As a result, investors feel that a growing number of markets will be in either the recovery or expansion phase of the real estate cycle by year-end 2014, according to PwC’s report.

 

Elsewhere, the industrial sector continues to improve, and many local occupancy levels are now near rates last seen prior to the downturn, according to the survey. Additionally, respondents said stronger economic growth has increased demand for both single-family and multifamily housing. The number of households continuing to rent, either by choice or necessity, remains at a high level, the survey showed.

With the demand in real estate picking up, brokers and agents can take advantage of its real estate market’s steady growth by using disruptive virtual tour technologies to market their listings. Realbiz Media Group, Inc. (OTCQB: RBIZ) develops proprietary video marketing software that agents and their brokers can use to promote their virtual tour listings online. The company offers a Virtual Tour Program that allows real estate sellers to create virtual tours and presentations that are optimized for mobile viewing and could be syndicated through social media for only $29.95 a month.

 

The program is equipped with a video search engine optimization (VSEO) tool that automatically generate meta tags and descriptions for virtual tours and listings agents have uploaded to the platform so that they would be found easily by consumers online.

 

The program also has tools for creating QR codes, e-flyers, and seller reports as bonus features.

To learn more about Realbiz Media and its products, contact sales@realbizmediagroup.com or call 1.888.REAL.BIZ (888.732.5249).

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

 

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