Expert To Bisnow: Despite Market Volatility, 2016 Will Be a Great Year For Commercial Real Estate
Markets rallied Tuesday after a tough couple of weeks—and a brutal Monday— with the Dow climbing 1.8%, the S&P up 1.4% and the Nasdaq up 1%.
Despite January's turbulence, the national real estate market should see mostly smooth sailing for the rest of the year, says Steven Moreira, current president of the Certified Commercial Investment Member Institute (CCIM).
There’s no denying the recent volatility, Moreira says, but it does have an up side: keeping rates in check. As a matter of fact, the Fed has a meeting tomorrow, with most observers not expecting any rate hikes in the immediate future.
While about a quarter of capital comes from abroad, the recent turmoil only convinces investors that US real estate is a safe place to park their money, Steven says.
Even though the jury is out on just how resilient the current recovery is, Moreira says he’s still bullish on the year ahead. “US real estate is one of the most stable, safest investments worldwide,” Steven says, predicting that 2016 will be “a very good year” for the industry.