More Growth Predicted for US Commercial Real Estate
It turns out an improving labor market and low gas prices are the gifts that keep on giving. Not only are they helping Santa out this holiday season, but they're also boosting the rental housing and office markets.
TIAA-CREF's Phil McAndrews says the state of the US economy means more optimistic forecasts surrounding commercial real estate, Realty Today reports. In fact, based on the NCREIF Property Index, total yields from commercial properties will likely see a sixth consecutive double-digit performance year since the recession.
Of course, real estate cycles don't have a particular pattern, but this current cycle is probably the result of factors like low interest rates, declining vacancy rates, rising rents and low inventory. [RT]