The U.S. economy and the stock market are sending opposite messages to the commercial real estate community, causing many industry professionals to scratch their heads. On the one hand, the leading economic indicators are solid. Monthly gains in nonfarm payroll employment averaged 280,000 during the fourth quarter of 2015, and the national unemployment rate ended the year at 5 percent. Average hourly earnings rose 2.5 percent in 2015, a sign that wage growth is accelerating… Read more »
U.S. office net absorption topped 100 million square feet for the first time since the Great Recession and the national office vacancy rate declined another half-percentage point in 2015 as broadening demand and constrained levels of construction contributed to tightening space availability in virtually every metro area…Read more »
Construction spending in the U.S. in 2015 reached a level not seen since the financial crash, the Commerce Department reported Monday. Last year’s expenditures rose to $1.097 trillion, 10.5% higher than 2014?s expenditures of $993.4 billion and the highest level since 2007, when construction spending stood at 1.148 trillion… Read more »
Among real estate property types, multifamily has been strong and the outlook is positive for 2016. Investment dollars are still flooding into the apartments sector, although investment is more focused than ever on core strategies (new construction in urban infill) and will continue to be more conservative and careful. What can we expect to see in the capital markets crystal ball? Here are my top five predictions for 2016… Read more »
You don’t need to go to London to see how the world’s globe trotting elite, some quite unsavory characters, have been behind the boom in super luxury real estate. Drive down 11th Avenue in New York along the Hudson and you will see them: new towers with their own architectural sex appeal, catering to multi-millionaires willing to fork over more for a property than any American would ever dream today… Read more »