What to expect in CRE in 2018
The investment cycle’s best years are in the past, according to Colliers International. Nevertheless, steady growth will continue, but at a slower pace. Office markets: slow and steady growth. Job growth will spur it on, but new supply levels are high. Suburban office markets are expected to continue to outperform downtown centers. Multifamily Labor markets are strong but wages are growing very slowly. This could stifle consumer confidence and spending, and hurt the multifamily sector. However, some economists are predicting that the new tax laws will discourage home buying, leading to more renters. Industrial Industrial real estate will remain strong. Online deliverers want more and more modern, multilevel distribution hubs. Retail Colliers predicts continuing store closings and bankruptcies. Moody’s Analytics, however, predicts the sector will fare better this year compared to the last.