While there may be issues to keep an eye on—such as shifting consumer behavior and rising inflation and interest rates—the outlook remains positive for the short term, several real estate economists told NREI.
Some are watching fast-growing secondary markets closely to see how they absorb the new apartments now under construction.
Government subsidized tax credit programs do not address the needs of the “bread and butter” of the U.S. workforce, who earn more than 60 percent of AMI.
The main concern is that demand for tax credits could diminish once institutional investors calculate the full impact from the Tax Cuts and Jobs Act.
Here is an outlook on the sector for the upcoming year from several sector experts.
While location is what makes these streets so desirable, competition for space from technology companies is what's driving up rents.
Top industry experts offer their views on “hot topics” that will impact commercial real estate financing and investment in the coming year.
Cap rates for properties occupied by high-quality tenants, such as 7-Eleven, have achieved cap rates between high 4 percent and low 5 percent in the fourth quarter of 2017.
There are several headwinds that need to be addressed—if not this year, then soon, some industry experts say.
The competition between mezzanine lenders is keeping interest rates relatively low for mezzanine loans, even though short-term interest rates overall are rising.
