Apr
14
Six Trends in Commercial Real Estate to Watch for in 2015
ByThis article was written by Peter Burley and David Lynn, two of the contributors to ULI’s new book, The Investor’s Guide to Commercial Real Estate.
While many variables will determine the course of U.S. commercial real estate, here are six potential trends for 2015 based on the current outlook:
- Increased allocations and capital flows. With most institutions—not to mention high-net-worth investors—still being underallocated to real estate, combined with the strong four- and five-year performance of both NCREIF and NAREIT, we can expect more investment capital coming into commercial real estate. The significant amount of capital would be vexing if not for the fact that real estate seems to offer some of the best risk/reward propositions around, particularly given the multiyear run-up in equity and bond values. Look for higher allocation targets, and more foreign and retail investor money to continue to push capital values up well beyond the 2007 peaks, which should be cause for concern…
Six Trends in Commercial Real Estate to Watch for in 2015
