Ren: Full Recovery in CRE Hinges on Job Growth

7/12/2010 | By

Morningstar analyst Jason Ren spoke with's Allen Kenney during REITWeek 2010 in Chicago. Among the topics discussed were Ren's view of a full recovery in commercial reale state.

"The operating fundamentals remain quite deteriorated due to the low employment rate," Ren said. "I don't know if you can characterize a recovery as full-on without an improvement in the job market."

Ren added that timing for an increase in acquisition activity remains uncertain.

"There is a massive amount of transactions that need to be refinanced, and in the absence of easy credit owners will either have to plug in more cash or let go of the properties," Ren said.

Public REITs are in the best position to acquire properties due to the strength of their balance sheets.