U.S. property values will rise: Zell

Real estate mogul Sam Zell said he expects little construction activity in commercial real estate nationwide over the next one to three years, except for apartment houses, according to Reuters. “We’re now approaching three and a half years of no development, and I see little prospect for new supply over the next 12 to 36 months except multi-family,” he said. With new supply, the value of existing office buildings, shopping centers, hotels, warehouses and distribution centers should increase and vacancies should fall, Zell said, which would cause lenders to stop extending maturities on loans on underwater properties and fuel property sales. Zell also predicted that real estate would do well over the next 24 months. “When the buildings fill, then pretend and extend is over,” he added. [Reuters]