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LA, NY, Chicago Cities to Watch in 2018, Says TH Real Estate
New research from TH Real Estate, an affiliate of Nuveen, the investment manager of TIAA, predicts investment volumes for US real estate will be in line with those of 2017, and that Los Angeles, Chicago and New York will be the “cities to watch” in 2018.
TH Real Estate reports that the US real estate market is poised for another year of positive performance, with core unlevered real estate total returns to range between 5% and 6% in 2018. Despite an increase in vacancies, retail conditions have improved with unlevered property returns averaging 5.7% for 2017 in the US. Strong secular trends in e-commerce sales and omni-channel retailing will continue to drive demand for warehouse space as the retail and industrial sectors remain buoyant investments.
Los Angeles was the largest U.S. commercial real estate market in 2017, with more than $28 billion worth of sales transactions. That trio of major cities noted above are expected to be the standouts in the coming year, based on 2017 performance and shifting megatrends, reports TH Real Estate.
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