“The underlying market fundamentals are weakening as employment growth will slow dramatically in 2017 and 2018 compared to recent years and supply is increasing,” David Shulman, senior economist at the UCLA Ziman Center and UCLA Anderson Forecast, tells GlobeSt.com. “Although Brexit may have delayed the interest rate rise we have been looking for, higher rates are still in the cards for 2017 and 2018. Against a backdrop of record low cap rates, it is hard to see that there is much more room for commercial real estate prices to run.”
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