New Updates on Trends in Top Markets
This week SVN released the 2016 Market Outlook Reports as a way to update the CRE industry on current trends. Teaming up with the Lakemont Group, Real Capital Analytics, and REIS, SVN put together reports detailing today’s economic conditions and how they impact commercial real estate. These reports also highlight top markets to watch across the U.S., citing cities such as Chicago and Atlanta that CRE professionals should keep an eye on. Broken up into four major asset classes – industrial, multifamily, office, and retail – these reports provide useful insights as we head into the second half of 2016.
Highlights from Each Report Include:
Industrial
- Global pressures weigh on growth
- Net absorption strong as vacancy falls
- Fundamentals improve for all industrial sectors
- Demand growth persists
- Yield seeking investors discover industrial properties
- Warehouse is the storefront of tomorrow
Multifamily
- New supply meeting demand
- Rent growth fuels supply expansion
- Class ‘A’ leads in rent growth, ‘B/C’ in occupancy
- Record households and jobs increase demand growth
- Low cap rates engender price risk fears
- Baby Boomers may form next rental wave
Office
- Slow growth and steady gains
- Record rents amidst still high vacancies
- ‘B/C’ holds steady while ‘A’ gains
- Domestic strength and global uncertainty
- Wide spreads indicate low risk
- Return of the private office is possible
Retail
- Discovering a new normal
- High vacancies restrict the need for new supply
- Neighborhood centers make gains on power centers
- Consumer segment continues to grow
- Opportunities for mispriced assets exist
- Housing reconstruction to spur retail demand
Stay Updated…
Over the next few weeks, the SVN Blog will be featuring posts that will focus on each of the top markets to watch for industrial, multifamily, office, and retail properties. SVN Advisors from selected top markets have provided their industry expertise regarding what to look out for in their specific market in the coming months. Don’t miss out on these important insights – subscribe to the SVN Blog on the right side of the blog homepage.
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