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By Karen Nickerson, Moody’s Investors Service

The sentiment regarding the economic recovery has turned decidedly positive in 2011, a welcome divergence from the caution and uncertainty that prevailed in 2010. There is even optimism surrounding the outlook for job growth in 2011, good news for the office sector, which needs job creation to drive office demand.

By John Decouto, Lee & Associates

Beginning in 2013, under the proposed FAS 13 changes, operating leases are to be reported on the balance sheet. The new lease accounting rules will capitalize operating lease obligations differently than the process credit rating agencies and lenders currently use. While these agencies are aware of the differences and prepared for the changes, many parties in a net lease transaction may not be aware of how the new rules could affect credit analysis.

The TJX Cos. plans to consolidate its A.J. Wright division by converting 91 stores into one of its other brands and closing the remaining 71. In line with the consolidation, the company said it will cut about 4,400 jobs.

By Paul House, Jones Lang LaSalle

Transaction flow in all product types, led by multifamily and office, has surged from the record-low level established in 2009; through the third quarter, the four primary sectors have seen a combined increase in volume of 92 percent for the year, and full-year sales volume appears headed toward $95 billion.

By Bob Bach, Grubb & Ellis Inc.

One of my colleagues at Grubb & Ellis recently wrote the following: “From a longer-term perspective, look for investment capital to flow to those states that optimize the blend of balanced budgets, low taxes (property, income and sales), low regulation and business incentives. Businesses and people are more mobile than ever, and intelligent capital will go there first.” This is an intriguing concept, but is it true?

By Steven Marks, Fitch Ratings

The rating outlook for U.S. equity REITs remains stable, thanks largely to expectations of strong capital markets access, continued de-risking of issuers’ balance sheets and strategies, expectations of relatively unchanged coverage metrics and a strengthening asset sales environment.

By Raj Aidasani, Jay Koster and Guy Ponticello, Jones Lang LaSalle

Property fundamentals stabilized and lenders across the spectrum re-emerged. The CMBS market in particular returned strongly in 2010. CMBS issuance in 2010 was more than four times the total issuance in 2009, and 2011 looks even more promising. The single-tenant sector also benefited, especially in the second half of 2010, fueled by increased credit availability and demand from private and public REITs.

Source: SNL Real Estate