For our commercial real estate clients and audience; I came across a great article in my Fidelity Investments newsletter addressing some CRE market predictions and two take-aways:

1. Real estate stocks have rebounded and “Fidelity believes that, despite today’s challenging economic conditions, some exposure to the $2.25 trillion commercial real estate sector still has potential long-term benefits for investors with a diversified portfolio.”

2. Mark Snyderman, manager of Fidelity Real Estate Income Fund (FRIFX), explains 5 reasons the decline in commercial property values is nearing an end:

“First, capitalization rates, the ratio between a property’s net operating income and its market value, which have an inverse relationship to property prices, are 8%-9%—roughly in the vicinity of their long-term average. Second, while REIT fundamentals are still weakening, I believe that this is already priced into the market. Third, from the research I’ve done, it appears to me that there is some pent-up demand for commercial real estate property—money is on the sidelines and is waiting to be put to work. Fourth, the overall economic backdrop appears to be improving, which will certainly help this sector, among others. And last, the new supply situation is currently favorable. New construction in the commercial real estate space has been below levels that would seem reasonable to accommodate the combination of future economic growth and the replacement of old and out-of-date buildings. When you take a look at all of these factors working together, it tells me that we’re close to the bottom,”

This is a message to courier to your audience and investors… because it’s only going to get stronger.  Prepare for positioning yourself in the next year through 2012 NOW by embracing and incorporating e-marketing and social networking into your marketing plan.  Contact us to see how we can help.