Foreign demand for U.S. commercial real estate elevated. Global financial market volatility, weak foreign economies, low alternative investment yields and a variety of factors creating uncertainty have reinforced the advantages of direct investment in U.S. commercial real estate.
Contrary to polls and predictions, citizens of the United Kingdom voted to leave the European Union, creating uncertainty that induced a sharp decline in global equity markets.
Commercial mortgage-backed security (CMBS) financing slowed dramatically in the first half of 2016 as volatility roiled the debt markets. In addition, new rules governing CMBS issuance that take effect at the end of this year also created uncertainty in the marketplace.
Unforeseen events tap the brakes of the investment market. The unanticipated results of the presidential election sparked a shift in several macro-level dynamics that have begun to ripple through the commercial real estate market.
Following the lengthy campaign, Donald Trump surprised pundits and pollsters by winning the presidential election. This unanticipated turn of events set off a rapid drop in both stock market and Treasury rate futures before they recovered early Wednesday morning. In the wake of this unexpected outcome, markets are repricing both debt and equity to factor in increased government infrastructure and defense spending as well as the prospects of higher inflation. Sentiment is fragile and volatility… Read More
Investors Dial Back Transactions Amid Murky Policy Outlook, yet clarity and healthy fundamentals will likely revive activity.
Fed rate increase following March’s meeting signals confidence in the economy yet reinforces investor caution and the slowing of investment real estate transaction activity.
The homeownership rate is at a 12-year low due to young households favoring apartments.
As the single-family housing supply falls to a record low, a tight market strengthens apartment demand.
Broad-based and robust hiring during January extends last year’s labor market momentum thus offering an upbeat commercial property outlook.