Commercial Real Estate's Perfect Storm: What Lies Ahead?

For the last few years we've enjoyed a perfect storm in commercial real estate. There has been a simultaneous occurrence of stabilizing rents, improving fundamentals, and really, really cheap money. The commercial real estate in India remains strong, although not as great as it has been in the last few years. Since late 2001, revenues have steadily increased, with investors pouring more money into the sector.
The commercial real estate market has been on a tear in the last few years. Banks, insurance companies and institutional investors funneled money into the market because its returns, in an environment of low interest rates, exceeded those of alternative asset classes. This segment of the broader real estate market typically includes office, retail, multifamily and industrial properties.