Commercial real estate’s fun over the last six years of growth is over—get ready for three years of decline, says a new survey.
The Urban Land Institute, a DC based industry trade group, surveyed top real estate economists and analysts and came to the conclusion that commercial property prices are going to grow at a slower rate while returns from both public and private markets decline, the Dallas Morning News reports.
The report predicts the annual volume of commercial property transactions will decline over the next three years to $475B in 2018. That’s down from an expected $525B this year.
But don’t get worried yet. ULI’s William Maher stresses, “there is no imminent downturn on the horizon.” It’s just the slow, steady downturn you should worry about. [DMN]
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