Oct 4, 2010, 10:04 AM, By David J. Lynn, Ph.D., NREI Contributing Writer

Article provided by Chris Shaheen, Development Specialist for Saurage Commercial Real Estate

Commercial real estate performance generally lags economic growth by about four to six quarters.  As our firm, ING Clarion Partners, suggested earlier this year, 2010 appears to be a transition year, moving from the steep downturn of 2009 toward a sustainable recovery in 2011.

Real estate market values fell by about 32% from the peak in mid-2007 to the first quarter of 2010.  The price decline was steep and quick, in contrast to previous recessions when write-downs dragged on for several years.  Although we cannot predict an exact recovery timeline, we believe we are in the early stage of the next upturn cycle for well-leased core properties in primary markets.

The National Council of Real Estate Investment Fiduciaries (NCREIF) has been tracking returns for properties owned by institutional investors such as pension funds for more than 30 years.  The NCREIF Property Index (NPI) tracks the performance of returns for more than 6,000 properties, breaking down returns by property sector, market and region.  The NPI also provides returns data broken into income and appreciation components.  To read this article in its entirety click HERE.Chris Shaheen is a graduate of Louisiana State University where he obtained a Bachelor of Science in Business Management.  Shaheen obtained the Louisiana Real Estate Sales License in 1995 where he began work as a consultant with Saurage Company Inc. as a specialist in development, land valuation, and financing.Saurage Company, Inc dba Saurage Commercial Real Estate was founded in Baton Rouge in 1991 with the purpose of providing exceptional real estate services with an emphasis on commercial property and property management. Saurage Commercial Real Estate offers to its clients a full range of real estate services including brokerage, investment advising, development consulting, REO disposition specialists, asset management, fee based consulting, tenant representation, and buyer representation. The staff of professionals includes combined experience of 50 years, as well as CCIM Designees and Candidates and recipients of Master of Business Administration.