Private sector deleveraging has been relatively swift, but public debt has increased significantly, said CB Richard Ellis Researcher Asieh Mansour. Despite increased public debt, however, total U.S. debt outstanding (public and private) has actually declined. A case for modest U.S. economic growth centers on private sector deleveraging, flexible labor markets, a stabilizing housing market and strong corporate profitability. But, value-add strategies may largely depend on the curing of vacancy, which could take longer to achieve. Secondary markets that do not have the dynamic engines of job growth may also see weak real estate demand for a more prolonged period. As a result, investor focus has been on the stronger, gateway markets.For the full report, CLICK HERE
