The slowdown in commercial real estate development during the recession should give commercial property landlords room to raise rents.
Rick Romano a portfolio manager at Prudential Real Estate Investors, gave that assessment Wednesday during an economic outlook briefing organized by Prudential Financial Inc., Newark, N.J. (NYSE:PRU).
Romano and other panelists said they are optimistic.
“Looking to fall and towards year’s end, I think there will be some reversion away from the extreme pessimism on the economy right now,” said Robert Tipp, chief investment strategist at Prudential Fixed Income.
Prudential has been encouraging clients to continue to invest in the $90 trillion fixed income market. “Fixed income has pretty much continued to defy the naysayers,” Tipp said.
Edward Keon, managing director at Prudential’s Quantitative Management Associates, also expressed optimism.
“We do believe the second half will start to see better economic activity,” Keon said.