Peter Muoio

Irvine, CA—According to Ten-X Commercial's Peter Muoio, the strongest outlooks for commercial real estate across US cities in 2019 can be found in Salt Lake City, Palm Beach County, Jacksonville, Las Vegas, and Los Angeles. Some segments within these metros will perform better than others, but they all share the distinction of having potential for further returns on investment despite the late stage of the CRE cycle.

“Salt Lake City has benefitted from strong local employment growth and rapid population growth throughout the current expansion.” Muoio tells GlobeSt.com. “A strong labor market and confident consumer outlook is driving strong growth in domestic tourism, particularly in hot-spots like Palm Beach. Jacksonville has particularly strong outlooks for its hotel and multifamily markets, due mainly to limited supply outlooks. Las Vegas is another market benefitting from the strong US economic backdrop, specifically the healthy labor market, stronger wage growth, and peak consumer spending. Finally, Los Angeles industrial vacancies are extremely tight at less than 3% and are forecasted to remain below 4% throughout the next four years.”

In Salt Lake City, the Metro population growth of 1.4% doubled the U.S. average in 2017. The metro's multifamily and retail sectors stand to benefit the most from further economic and demographic gains, with the net operating income (NOI) growing a respective 2% and 1.4% in 2019 amid rising effective rents, according to Muoio.