Real estate investors watching Washington to glean sector impacts
June 21, 2017 | by ARLEEN JACOBIUS | Pensions & Investments
Unlike some asset classes, commercial real estate did not participate in the so-called Trump bump. But real estate growth in coming years could, in part, be affected by which of the administration’s policies becomes reality, according to a new white paper by real estate money manager LaSalle Investment Management. Real estate investors, collectively owning a combined $534 billion in core properties, did not participate in the market’s highs and lows following the election of President Donald Trump.
While real estate lags the economy in general, Mr. Trump’s election and the early days of his presidency coincided with a slower real estate market, resulting from higher interest rates and slow economic growth, the LaSalle paper stated. Real estate vacancy rates flattened in the first quarter after several years of steady improvement. For example, apartment vacancy rates were up 50 basis points from the prior quarter and 20 basis points from the year-earlier period as more apartment buildings came on the market, the paper stated.
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