NEW YORK CITY—On a macro level the commercial real estate market in the US and Europe remained strong throughout 2017, says Gino Sabatini, W. P. Carey's head of investments and managing director. In the US, rents in both the industrial and office sectors reached historic highs with cap rates getting compressed even further than they had been over the past few years.
Sabatini continues that vacancy rates remain super low and demand in most markets including Colorado and many others outpaces supply. He imagines that five years from now, people could look back and see 2017 as the peak of the current cycle.
“I think in 2018, sellers will become more motivated and buyers will regain some leverage,” says Sabatini. With the upcoming, expected interest rate increases, Sabitini believes W. P. Carey will have a bit more leverage in the acquisition environment which he anticipates will improve over the near and medium term.
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Betsy Kim
Betsy Kim was the bureau chief, East Coast, and New York City reporter for Real Estate Forum and GlobeSt.com. As a lawyer and journalist, Betsy has worked as the director of editorial and content for LexisNexis Lawyers.com, a TV/multi-media journalist for NBC and CBS affiliated TV stations in the Midwest, and an associate producer at Court TV.
