Although the recent election has created feelings of uncertainty regarding the commercial real estate industry, there are still conditions encouraging growth in this market. With a strengthening economy, good properties, and easy access to capital this “continued boom” will remain strong. It was predicted that Trump’s tax and regulatory policies would create a concern for the market, but real estate owners and investors have remained “bullish” on this matter.
To further support the feelings of CRE leaders, multiple surveys conclude that there will be a positive trend for improving the commercial real estate industry. These surveys had some specific concluding results. Executives are focusing on real estate fundamentals as the principal way to improve revenue growth. Investors believe that equity capital will also grow. Continued high returns lead to “sustained interest” in the market compared to others. This, combined with a growing economy, is contributing to a growing and strong industry.
While the overall industry is expected to remain strong, commercial mortgage backed securities are going to remain risky because of outside factors including “geopolitical trends”. However, new lenders are offering new investment opportunities to help compensate for this risk.