CRE Growth Favors Smaller Markets

November 8, 2016

CRE Growth Favors Smaller Markets

ORLANDO—With a slow-growth economy and the probability of an interest rate hike, investors are expected to take a cautious approach in coming months, the National Association of Realtors’ Lawrence Yun said at a conference Friday.

ORLANDO—Commercial real estate’s growth path is expected to veer into smaller markets in 2017, industry experts said Friday at a National Association of Realtors conference here. Attendees also heard from the Counselors of Real Estate on the top 10 emerging trends to watch next year, on both the residential and commercial sides.

Given the slow-growth economic environment, instability overseas and the probability of a rate hike by Federal Reserve next month, investors are expected to take a cautious approach in the months ahead, NAR chief economist Lawrence Yun said Friday at the Realtors Conference & Expo. As a result, Yun is expecting a modest decline in commercial property prices, especially for class A assets in larger markets.

“Prices in smaller markets should continue to climb with strong tenant demand and declining supply supporting growth,” Yun said. “As job creation continues, commercial real estate and vacancy rates will be stable across the country.”

K.C. Conway, SVP of credit risk management at SunTrust Bank, focused on the key commercial real estate sectors, investments and capital market trends. He told the NAR audience that the conditions supporting expansion in commercial real estate will remain strong as long as the Fed remains dovish on interest rates.

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Gregory De Jong, CFP, Co-Founder of Paragon Advisors, LLC.
July 7, 2015

Blue Vault is just what advisors need to size up the different offerings in the nontraded REIT market. Just as importantly, it’s what the industry needs to encourage best practices among REITs.