Commercial property is outperforming the residential sector in the US, new research has revealed. Business Monitor International's United States Real Estate Report discovered that there is still a significant gap between the two markets.
According to the study, commercial assets - which include those across the retail, industrial and office sectors - appear to have reached their lowest point and are on the road to a slow recovery, with improvements noted in vacancy rates and net absorption. However, the residential market is not yet following the same path.
Falling values of homes and apartments looks set to continue, the research states, with prices seeing their biggest decline in three years during the first quarter of 2011. The economic recovery of the US is key to boosting its real estate sector and this still represents a significant risk to the industry, the organisation added.
However, the low prices present opportunities for investors with available capital and at the recent Reuters Global Real Estate Summit 2011, a panel of experts highlighted the US as one of the top places to purchase real estate in the world.