Where Are We on the Clock to Recovery? A look at which Lexington markets are faring best as the industry slowly climbs to recovery.
LEXINGTON, Ky. (Feb. 6, 2012) — Generally, all vacancy levels and leasing activity for each Lexington commercial market segment; office, retail and industrial improved in 2011.
Single tenant, high-quality investment real estate continues to be in demand. With savings earnings at an all-time low, the unpredictability of the stock market and the availability of low interest rate financing, investors are seeking security and returns in the relative safety of single tenant, corporately guaranteed, leased properties.
There are some projects that were built based on the availability of financing rather than demand. Those projects continue to struggle and create misleading or skewed market vacancy levels. The available space in the more desirable corridors reflects lower vacancy than the overall market and is a better indicator of the demand for space.
There is also a demand for distressed properties that are priced below replacement cost and for owner-occupied commercial real estate in all categories. Lexington’s commercial real estate market should continue to stabilize in 2012.
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