Commercial Real Estate 2018 Outlook Winston Rowe & Associates
The economic policies of President Donald J Trump are taking hold across the full spectrum of the US economy.
By: Winston Rowe & Associates
Capital Markets: The next three years will likely see cap rates flat at best or rising, which we expect will outstrip property income growth.
Office: U.S. office market growth should continue in 2018, but at a slower pace, due to higher completions and the tight labor market's impact on tenant demand.
Occupier: Labor remains the primary challenge facing corporations. Even as they lower their space requirements, many occupiers are reinventing or adapting their workplace standards to meet employee demand for amenity-focused, flexible, technology-driven work environments.
Industrial & Logistics: Although we are well along in the economic cycle, in the e-commerce/omnichannel cycle we are not, so demand for high-quality, well-located industrial real estate should not wane anytime soon. In most markets, a lack of quality space options is challenging those seeking to expand their supply chains.
Retail: Changing demographics, consumer expectations and omnichannel retailing will continue to reshape retail and its real estate environment in 2018.
Hotel: Forecasts for continued U.S. economic expansion portend a favorable year ahead for the U.S. lodging industry, with forecasts of income and employment growth—coupled with slowing supply growth— promising increased demand for hotels.
Medical Office: The direction of health care policy and payment mechanisms may remain uncertain, but rapid growth in the older population will remain a significant tailwind for medical-office demand in the years ahead.
Seniors Housing: The seniors housing market improved modestly in 2017 and is set to improve further in 2018, largely due to lower construction levels.
Winston Rowe & Associates published this article, they are financiers of commercial real estate and publishers of Free eBooks. They can be contacted at http://www.winstonrowe.com