Commercial Real Estate Rocks On As Stock Markets Tumble

Photo from Marcus & Millichap website

According to a report by Marcus & Millichap (shown: M&M's NYC HQ), commercial real estate is still going strong, despite the Dow and Chinese market falling to shambles. Just like construction, commercial property investment has formed a “stable foundation” for the US economy as investors—both foreign and domestic—seek the security of hard assets and have supported increased property values. “We’re still in the middle of what I expect to be a strong bull market in the real estate asset class,” NAREIT SVP of research and information Brad Case says. And with low interest rates (which could change very soon) and 1,500,000 new jobs this year alone, the demand is only going to keep increasing. Construction's winning big also, emerging as one of the strongest sectors of the US economy. The stock market volatility did put a dent in one commercial real estate sector, as REITs took a hit in August. As strong as the market is, an international "shock-level event" could cause a crumble, though the likelihood of that happening is pretty small, the report says. [GS]

Continue reading this story with a free account

Log in or register
Related Topics: Dow Jones , Marcus & Millichap , REIT
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

Inside The Nationwide Jockeying For Opportunity Zones 2.0

GTIS Partners Rebrands As Brightshore Capital, Launches $250M Debt Platform

Data Center Spills 5,000 Gallons Of Fuel Into New Jersey River

Hines And Rialto Close Office Credit Fund At $1.1B

Chipotle Adding Hundreds Of New Locations Worldwide

'Beyond A Routine Wobble': 10-Year Treasury Clears 5% Ahead Of Key Fed Meeting

Trump's DEI Crackdown Is Creating New Risks For Landlords That Lease To The Government

Airbnb Launches $250M Fund To Invest In Affordable Housing

Brookfield Buys Minority Stake In Hyperscale Data Center Developer AREP

Judge Dismisses Suit Alleging Alexandria Misled Investors Over Portfolio Strength

How Companies Can Eliminate Shadow AI And Gain Value From Artificial Intelligence Tools

Canadian CRE Investors Shrug Off Trade War, Spend $9B On U.S. Assets