The 2016 New Year Predictions For CRE
As old man 2015 passes from the stage and a brand spanking New Year gets the spotlight, what is in the cards for 2016’s commercial real estate industry? Here’s a fast roundup of predictions from industry stalwarts.
- NAR’s Chief Economist Lawrence Yun: Predicts vacancy rates for office and industrial space will fall, to 14.8% and 9.7% respectively, driven by job creation. Retail space availability is expected to drop to 11.3%. Because of new multifamily projects in several markets, multifamily vacancies are expected to increase to 7.3% Read the Q4 2015 Commercial Real Estate Outlook in full here at this link.
- Urban Land Institute Real Estate Consensus Forecast: Commercial property transaction volume is expected to increase for another two years and then level off at a robust $500 billion by 2017. Commercial property rents are expected to increase for the four major property types in 2015, ranging from 2.0% for retail up to 4.0% for both office and industrial. Read the entire report at this link.
- Kimco Realty President Conor Flynn: Five predictions for the national retail real estate market from the head of North America’s largest portfolio of neighborhood shopping centers. Get the entire article here.
- Fortune Magazine’s Hottest Real Estate Markets in 2016: If you can treat residential market analysis as a trailing indicator for commercial property markets, you can play along with Fortune Magazine’s peek into the crystal ball. Get the entire article here:
Happy New Year!
From everybody at the Source blog — and from NAR Commercial — here’s wishing you the very best and most successful 2016!