IRR: Industrial Hot, Office Doing Well, Multifamily Retrenching
U.S. consumption growth is benefitting the retail and industrial sectors, while the multifamily area is retrenching from a long bout of heated growth. Additionally, office product continues to attract investment interest (depending on the location), while the hospitality sector is bracing for change, according to Integra Realty Resource’s “Viewpoint 2017 Commercial Real Estate Trends Report.”
The report, issued annually, examines trends in each CRE sector, and provides forecasts for the following year. The 2017 report also includes commentary from renowned commercial real estate economist Hugh Kelly. Additional takeaways include:
- More emphasis on fiscal policy, with the new U.S. President’s focus on military spending, infrastructure improvement, and cutting taxes.
- Housing construction will continue slow in 2017, ratcheting up demand, and prices.
- Even with interest rate increases, cap rates are unlikely to spike enough to put pressure on demand.
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