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2018 Outlook: Steady Economy, Stable CRE

“Risk-adjusted returns for CRE are favorable to other asset classes over the long term and provide investment diversification,” says Kenn Riggs at Situs RERC.

By Paul Bubny | Updated on January 31, 2018

Ken Riggs, president of Situs RERC. Situs RERC’s Ken Riggs says CRE provides “an attractive choice” to investors “amid the ongoing US political drama that is expected to continue in 2018.”

NEW YORK CITY—The year ahead for the domestic economy and commercial real estate appears to be more of a good if not necessarily spectacular thing, judging by the annual forecast report from Situs RERC, Deloitte and the National Association of Realtors. Expectations & Market Realities in Real Estate 2018 – Stability in a Risk Environment calls for steady economic growth and continued stability across most of the major property types.

“As we near the end of one of the longest economic expansions in US history, CRE investing can continue to be a secure way to build wealth by carefully considering the space market fundamentals,” according to the report. “CoStar data show that overall, CRE fundamentals are sturdy, with vacancy near or below their Great Recession levels across most property types. Although increased supply across the sectors will begin to tilt vacancies higher, rents should remain relatively stable as demand for space is expected to remain solid” throughout the year.

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