Commercial Real Estate Market Report & Outlook: Q1 2017
Apr 14, 2017
If the globally tumultuous 2016 wasn’t a clear indication of the type of year 2017 would be, the first few months have certainly put the debate to rest. Already, this year has been just as tumultuous, if not more, on a national and international level as last year – with no indication of slowing down. Following Brexit and contentious elections all over the world last year, this year has seen rising volatility of international relations and a huge directional shift in the U.S. political landscape with the inauguration of Donald Trump as President of the United States.
Every single event, whether it be a change in trade policy, a change in governing body, or the cooling of a diplomatic relationship, has an impact on the economy. Each event plays a role in the markets, regardless of industry, and the commercial real estate market is no exception.
A host of factors play into the commercial real estate sector, affecting commercial loan interest rates on all types of commercial loans, investor sentiment, and outlooks on various property types. The market is impacted by trade policies, regulatory agencies, job growth, and demographic trends – and all of which have seen major shifts within the past few years, and in the first quarter of 2017 alone.
Commercial Real Estate Market Review & Outlook: Q1 2017
At Riverdale Funding, we believe it’s crucial to stay informed. Whatever your engagement with the commercial real estate industry—borrower, broker, lender, investor—the best tool to arm yourself with is knowledge. With that in mind, we’re proud to present our Commercial Real Estate Market Review & Outlook: Q1 2017.
We’ve taken time to outline the major updates and need-to-know information related to the commercial real estate industry. We’ve poured over top-of-industry research from real estate thought leaders, with an eye for only the most relevant data. We’ve taken the time to analyze trends, search for patterns, and amplify the results so you can reap the rewards of being informed.
Reviewing the Report
The report is separated into seven chapters, which cover a wide array of topics relevant to anyone curious about the market. Naturally, we begin with a commercial real estate outlook in the first chapter, diving into regulatory updates, as well as updates on REITs, construction, and private equity. No quarterly report would be complete without coverage of the economy, which is why we offer a comprehensive overview in Chapter 2.
Capital Markets headline the third portion of the report, as we explore the impacts of the Federal Reserve Board’s recent hike of the federal funds rate, and seek to understand the impacts of debt capital and foreign capital moving forward. In Chapter 4, we turn our attention to tax reforms in 2017, as a new Congress has retained some focus on the subject, following a lack of action in the previous Congress.
Chapters 5 and 6 dive into a wide array of topics, from Commercial Mortgage-Backed Securities all the way to trade and immigration. All have experienced substantial changes in policy and regulation that we can expect to have long-lasting impacts in 2017 and beyond. We complete the report with a comprehensive overview of investor sentiment across six major commercial real estate property types.
The 2017 Horizon
We find quarterly updates useful for a plethora of reasons, but it’s never the wrong time to be reading up and learning where the markets stand, as well as the factors that have the chance to cause real impacts on the commercial real estate market moving forward.
We’re looking forward to continuing this journey with you, so we hope you’ll spend some time reading our Commercial Real Estate Market Review & Outlook, Q1-2017 (downloadable here).
Here’s to a wonderful Q2!