G&E: CRE Should Fare Well in '04

All segments of the commercial real estate industry should do well in 2004, according to an annual real estate forecast by Grubb & Ellis Co., a real estate services firm based in New York.As the economy picks up, leasing activity in the office sector should increase and vacancy rates in the industrial sector should fall to a little above 9% by year end, but the recovery will not be strong enough to boost rental rates for warehouse/distribution space in most markets, the company said. "Real estate is on the upswing, although it will take some time to fully reverse the effects of the 2001 recession and the job-loss recovery of 2002 and 2003," said Robert Bach, national director of market analysis at Grubb & Ellis. The company can be found online at http://www.grubb-ellis.com.