Expectations and Market Realities in Real Estate
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The new decade brings unique challenges and opportunities for CRE investors. The U.S. is well into the longest economic expansion in history, and the U.S. economy, financial markets, and capital markets are forging ahead into 2020.
Forging ahead can mean either “moving slowly and steadily” or “moving with a sudden burst of speed.” While the former definition is applicable to current economic growth and overall CRE space market fundamentals, the employment situation, industrial sector performance and secular changes impacting the CRE market are aligning with the latter definition.
Economic data, in general, show support for continuing economic growth in 2020, albeit at a modest pace.
The report also shows that commercial investors are likely to forge ahead with safe investment assets, particularly apartment and industrial properties, while the long-term fundamentals for the office and retail sectors should improve with rising incomes and stronger household balance sheets.