The commercial property owners are faced with an array of challenges and find it tough to remain financially strong for long. Falling values of property, decreasing number of tenants, limited options to refinance and rising rates of capitalization are some of the major challenges, according to the annual survey conducted by Price Water House Coopers.
Other findings of the report are as follows:
Difficulty in selling regional malls as rents are not improving
Occupancy levels and rental rates have become difficult to maintain
Decreasing demand for office space
As much as 30 percent devaluation in property rates in commercial districts and suburban areas
Demand for residential properties including apartments that are undergoing foreclosures is on an increase which is, at present, the only hope for the receding real estate market.