This Wednesday’s commercial real estate news includes a sunny outlook for investing in 2017, an out-of-the-box approach to property types by pension funds, and a report of houses and homeowners a decade after the recession.
Commercial Real Estate Investment Activity Set to Rebound in 2017
In spite of political and economic uncertainty, the commercial real estate market is forecast to exceed 2016’s levels. An analysis by JLL, predicts $700 billion in global investments, an amount last seen in 2014-15. New investors, opening markets, and the strength of US real estate all direct JLL toward their optimistic conclusion.
Pension Funds Consider Alternative Assets
New property types are mixing up the usual commercial investment portfolios of offices, retail stores, industrial parks and apartments. In an effort to get higher returns on their investments, pension funds are now turning their interest toward alternative assets. Student housing and hospitality are two of the most popular sectors.
Rising Home Values Aren’t Enough to Shake Consumers’ Memories of the Financial Crisis
Home values have risen 40% since 2012, but the memory of the ’08 crash is still keeping many on their toes when it comes to purchasing a house. “As time passes, people will forget the financial crisis,” said William Dudley, president of the Federal Reserve Bank of New York. He went on to add the chance of another recession in the next 5 to 10 years was highly unlikely thanks to a healthier financial system.