Fratzke Commercial Real Estate Advisors, Inc. is excited to share the latest Commercial Real Estate Outlook from the National Association of Realtors for the 1st quarter of 2018.
In this edition, the National Association of Realtors Commercial states, “Commercial leasing fundamentals remain poised for expansion this year, boosted by an expanding economy, employment and the tax reform. Vacancy rates are projected to continue their decline, except for multifamily properties, where rising new supply is putting downward pressure on rents. On the investment side, rising interest rates are expected to add upward pressure on investment yields. The Federal Reserve, under the leadership of newly appointed Chairman Powell, signaled its continued commitment to unwinding its balance sheet and addressing inflationary concerns through multiple rate increases in 2018. Most analysts are expecting at least three, likely four rate hikes this year. For commercial investments, these moves are likely to result in a slowdown in price gains. The pricing impact is likely to be spread across geography, sectors and property classes. In SCRE markets, price gains are likely in the first half of the year, as inventory shortage is expected to maintain the pricing trajectory’s momentum.”
*NAR’s Commercial Real Estate Outlook offers overall projections for four major commercial sectors and analyzes quarterly data in the office, industrial, retail and multifamily markets.*