19 Jun Commercial real estate market outlook strong in 2017.
The first few months of the Trump administration have been accompanied by plenty of uncertainty, but the outlook for the commercial real estate market for the rest of 2017 is positive, said Peter Muoio, chief economist at online real estate marketplace Ten-X.
The commercial real estate market will continue to be spurred by a combination of low vacancy rates and rent growth, which will drive net operating income growth in the industry. “Despite heightened uncertainty about a lot of things, including fiscal policy, monetary policy and geo-political events, the strong labor market particularly will continue to propel growth in the U.S,” Muoio said. ”With that, the fundamental backdrop for demand across the various property sectors should be positive.”
While the broad view from Ten-X is one of healthy absorption of space, Muoio stressed there will be variation across commercial real estate segments, as well across markets within each of those segments.
Excerpt courtesy of:
The Business Journal.
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