Regardless of Global Economic Volatility, CRE Sector is Moderately Positive

The existing global as well as US macroeconomic situation seems like rising the chances of uncertainty in the nearby trajectory of the global economies including the US economy, along with effecting the decision-making process across the industries. The commercial real estate (CRE) industry isn’t immune towards this certainty.

A number of economists across are continually raising concerns in terms of the rising instability of the economies across the globe. Moreover, intensified US-China trade talks, has constantly been slowing down the regions such as Europe and China, improbability over the Brexit followed by the political unrest between China & Hong Kong are even anticipated of weighing down severely over international trade, investments as well as equity markets.

Furthermore, there have been rising concerns about the probability of global recession. Despite of declining year-on-year industrial production reported within the first two quarters of the fiscal year 2018-2019, retail sales has been growing. On the other hand, base details are indicative of stable CRE market in the US.

Some of the key reason due to which CRE market has been expected to be stable include:

• A recent survey conducted in April 2019 exhibits a sustained confidence of global investors in the US CRE.
• Rental growth augmented along with steadily decreasing vacancy levels across property forms.
• Total volume of transaction has augmented almost 2 percent year-on-year to almost US$119 billion within second quarter.
• Banks constricted the lending standards of CRE, even though the demand for loan remained robust.
• The RCA CPPI (Real Capital Analytics Commercial Property Price Indices) rose to approx. 2.4 percent consecutively in second quarter. The national all-property index of the US was seen rising by almost 6.5 percent year-on-year in second quarter.
• Average rates of commercial property cap continued to be stable as well as trended at nearly 6.6 percent in 2019’s second quarter.

Fascinatingly, over and above 70 % of the surveyed CRE executives had plans towards maintaining or increasing their entire technology investments even in an instance of an economic slowdown. However, around 81 percent of the evaluated officials from CRE market having revenues of around US$10 billion are expected to uphold or else lessen the technology investments. This might possibly be because the prevailing technology finances of a few big players is higher.

Regardless of Global Economic Volatility CRE Sector is Moderately Positive

The existing global as well as US macroeconomic situation seems like rising the chances of uncertainty in the nearby trajectory of the global economies including the US economy, along with effecting the decision-making process across the industries. The commercial real estate (CRE) industry isn’t immune towards this certainty.

A number of economists across are continually raising concerns in terms of the rising instability of the economies across the globe. Moreover, intensified US-China trade talks, has constantly been slowing down the regions such as Europe and China, improbability over the Brexit followed by the political unrest between China & Hong Kong are even anticipated of weighing down severely over international trade, investments as well as equity markets.

Furthermore, there have been rising concerns about the probability of global recession. Despite of declining year-on-year industrial production reported within the first two quarters of the fiscal year 2018-2019, retail sales has been growing. On the other hand, base details are indicative of stable CRE market in the US.

Some of the key reason due to which CRE market has been expected to be stable include:

• A recent survey conducted in April 2019 exhibits a sustained confidence of global investors in the US CRE.
• Rental growth augmented along with steadily decreasing vacancy levels across property forms.
• Total volume of transaction has augmented almost 2 percent year-on-year to almost US$119 billion within second quarter.
• Banks constricted the lending standards of CRE, even though the demand for loan remained robust.
• The RCA CPPI (Real Capital Analytics Commercial Property Price Indices) rose to approx. 2.4 percent consecutively in second quarter. The national all-property index of the US was seen rising by almost 6.5 percent year-on-year in second quarter.
• Average rates of commercial property cap continued to be stable as well as trended at nearly 6.6 percent in 2019’s second quarter.

Fascinatingly, over and above 70 % of the surveyed CRE executives had plans towards maintaining or increasing their entire technology investments even in an instance of an economic slowdown. However, around 81 percent of the evaluated officials from CRE market having revenues of around US$10 billion are expected to uphold or else lessen the technology investments. This might possibly be because the prevailing technology finances of a few big players is higher.