In case you missed it: Impact of new tax deal and 2018 outlook
2018 is in full swing, and we look forward to a profitable year in the commercial real estate industry, full of lucrative opportunities for investors and developers. Now that you’ve recovered from the holiday shuffle, here are some recent stories you might have missed.
It was impossible to miss the news of the recent GOP tax overhaul. While many see the new tax system as a win for commercial real estate, it removes key factors that incentivize Americans to buy homes. On the other hand, multifamily is expected to see a welcome boost. Click over to Forbes for more about the new plan’s overall impact.
2018 is set to be a successful year for the construction industry. With 210,000 jobs added in 2017 and spending on the rise, the sector is booming. CNBC’s Diana Olick discusses current optimism within the industry and the ongoing impact on job growth. Head to CNBC to check out her article.
Colliers International economists forecast 2017 was the year of the market’s peak, as discussed in the company’s 2018 Outlook report. A few key factors include slowing deal volume, eight consecutive months of declining commercial property prices, and plateaued cap rates. The report indicates the industry is expected to continue seeing success thanks to the strong economy, but the pace will begin to moderate. For full details on the forecast for the office, multifamily, industrial, and retail sectors watch Bisnow’s slideshow.
Federal Reserve officials met in Philadelphia on the weekend of January 6th for the organization’s annual conference and job fair. Officials used the occasion to hold a serious conversation about which new tools to best utilize for combatting the next downturn. The issue is likely going to be at the top of the agenda for new Fed chairman Jerome Powell. For details on possible strategies, such as price-level targeting, visit MarketWatch.
Commercial Property Executive: “Fundamentals Rock Solid in Multifamily, Office Markets”
While there is concern that commercial real estate’s eight-year cycle of recovery will soon come to an end, all signs point to continued success in 2018. According to Paul Fiorella at Commercial Property Executive, commercial real estate performance will remain consistent in 2018. Read his article from Commercial Property Executive to learn why.
Do you think commercial real estate will continue to thrive in 2018?