2017 Promises To Be A Risk-Filled Year For Investors, UCLA Economist Said

NYSE, stock market, Wall Street
New York Stock Exchange 1963

Next year could be especially risky for investors — a senior economist from UCLA said caps rates and interest rates will continue to rise and create a risk-filled environment.

David Shulman said cap rates will be higher in six months and much higher in 18 months, pushed forward by the 10-year Treasury that could climb to 3% by the end of next year, GlobeSt reports. This could spell trouble for investors who recently purchased new assets; Shulman said buyers today are being forced to take on more risk than last year.

Additionally, the Fed is expected to continue to raise interest rates after pushing them up 0.25% in December. Capital markets are likely to become more difficult throughout next year. [GS]

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

Big Money Bets On SoCal Industrial As 2 Portfolio Sales Top $3B

Democrats Win Congress As America's Data Center Backlash Hits The Ballot Box

U.S. Hotel RevPAR Surges 7% In Q3, But Expect Easing From Here

Stock Sell-Off, Bond Market Jitters Signal Financing Trouble For AI Data Centers

Starwood Launches Residential Land JV Targeting $1B In Annual Originations

RealPage Antitrust Case Ends With Nearly $360M In Settlements For Renters

ZOM Living Entity Files For Bankruptcy To Fund Fight To Overturn $323M Judgment

How Colliers Engineering Helped A Struggling Dam Move To The Head Of The Class

New Opportunity Zones May Help Finish California Projects, Not Start Them

Real Estate's Bottom Rung Is Getting Harder To Reach — And Now It Wants AI Skills

OpenAI Plans Data Center Rebrand To Make Projects Palatable To Voters

The Geo Group To Reopen 2,329-Bed Immigration Facility In Texas