These are heady times for commercial real estate. Fueled by cheap money, low levels of new construction (except for apartments), and modestly improving demand, commercial real estate values have more than doubled from their financial-crisis lows of 2009.
Nevertheless, prices are leveling off as investors have become concerned that the period of extraordinarily low interest rates may soon be coming to an end. In addition, job growth—the source of much real estate demand—will inevitably slow as the economy approaches full employment. At the same time, supply will pick up as more construction is completed in 2017 and 2018.
Read more...Commercial Real Estate’s Slow-Motion Slowdown: E-Commerce and Other Disruptors of the Seven-Year Boom - Urban Land Magazine
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