WORLD PROPERTY CHANNEL ®

(SANTA ANA, CA) -- Bob Bach, Senior Vice President, Chief Economist, Grubb & Ellis Co., wears no rose-tinted eyeglasses but still forecasts a market turnaround by the end of 2009.

He cites these positive contributing factors:

• "Barely detectable interest rates, low energy prices and various rescue packages that have already exceeded $1 trillion will help to reliquify the credit markets and jump-start the economy.

• "Capital temporarily parked in U.S. Treasuries and other short-term investments will be redeployed into stocks, bonds and real estate when confidence returns.

• "Due to the integration of global capital markets, that process, once it begins, could proceed fairly quickly, helping to reverse the rapid deterioration that occurred in September."

Bob Bach

Bach notes that  "with the recession about to enter its 13th month, commercial real estate looks set to suffer through a cycle of rising vacancy rates, softening rental rates and increasing loan defaults, which has prompted industry trade groups to ask the federal government for help in refinancing debt."

Still, he says,  "Despite the pain that is yet to come, the seeds of a recovery are being planted."