Soundview Real Estate Partners Celebrates Growth in Commercial Real Estate
A new report finds that commercial building and development rebounded in 2011, compared to figures from 2010 -- and the report has drawn celebration from companies like Soundview Real Estate Partners.
STAMFORD, Conn., June 12, 2012 /PRNewswire/ -- A new report finds that commercial real estate development and construction -- a category that includes office, retail, and industrial buildings -- experienced a significant rebound in 2011. This marks the first time that these numbers have improved since the recession began in 2007. Naturally, findings like these have proven cause for celebration among many members of the real estate industry -- including private equity real estate companies like Soundview Real Estate Partners. Soundview has responded to the new figures with a press statement, expressing cautious optimism about the state of commercial real estate, and the economy in general.
"In general, we have observed more construction activity in commercial real estate in 2011 than we did in 2010," says Benjamin Marcus, Vice President at Soundview Real Estate Partners. The positive signs of economic growth are tempered with the caveat that not all markets are experiencing growth at equal rates, though. Marcus continues, "However, it isn't the same across all asset classes or markets. Apartment construction has a lot of activity, hotels are being built in strong cities like Manhattan that have maintained strong RevPar, and in high barrier to entry markets we see grocery anchored retail."
Overall, however, the Soundview Real Estate Partner executive's take on the new report is a positive one. "In general, the new construction is occurring in the prime locations that were at somewhere in the development process in 2007 and 2008, but development was interrupted by the implosion of the debt markets," comments Marcus.
According to the new report, the overall economic impact of the development of commercial real estate in the year 2011 added $261.6 billion to the GDP, compared to $231.7 billion from the year 2010. This marks a 13% increase within the last year.
The report also notes that development includes not just construction, but also pre-construction and post-construction activities.
The report was drafted by the NAIOP Research Foundation, whose CEO, Thomas J. Bisacquino, says the growth in commercial real estate is ultimately good news for everyone. "We believe this is the most solid evidence yet of a strengthening recovery," says Bisacquino. He also notes that the report projects continued growth in 2012, and even in 2013 and 2014.
Soundview Real Estate Partners, meanwhile, is a private equity real estate company based in Connecticut. The company was founded in 2003 by President Nicholas Newman, who currently leads the company, along with vice president Marcus. The company has invested more than $250 million in equity.
Soundview Real Estate Partners was formed in January 2003 as an expansion of the real estate investment platform established by company President, Nicholas Newman. The company, led by Newman and Vice President Benjamin Marcus, uses a joint venture-driven investment model built on an established network of local and regional real estate operators. Since 2003, Soundview has invested over $250 million in equity in over 70 separate transactions and combined real estate valued in excess of $2 billion. For more information about Soundview Real Estate Partners visit www.soundviewre.com.
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