As part of our commitment to our clients and partners, we stay current on real estate trends and forecasts both locally and nationally. We regularly have the chance to learn from national experts through conferences, meetings and industry publications and we are pleased to periodically share their insight with you.
Lawrence Yun, chief economist for the National Association of Realtors, spoke in November at the 2017 Realtors Conference and Expo about the strength of the economy and commercial real estate markets nationally and globally. Below are a few highlights from his speech on his expectations for 2018.
• Yun stated that commercial prices will plateau and may fall in large markets, but secondary markets will experience sustained demand and stable real estate prices.
• Overall, the market is healthy. Commercial property prices have risen 90 percent in the last seven years, but headwinds are developing. Buyers feel cap rates may have reached their low point due to rising interest rates, while sellers cite the strong economy, falling vacancies and rising rental rates.
• Yun expects GDP for 2017 to end up at about 2.2 percent and expand to 2.8 percent for 2018. Vacancy rates are forecast to remain constant over the next year with rental rates rising slowly.
• “Global economic growth is accelerating, and 2018 sees the world’s economic trains running strongly together,” Yun said.
• Yun anticipates strong performance from all sectors of commercial real estate, with supply beginning to catch up with demand.
To read more about the conference or for additional information, visit the Newsroom at the National Association of Realtors website: nar.realtor