Monday, April 13, 2015
New forecast: Three more years of commercial real estate boom
The commercial real estate sector can expect three more years of solid growth – one of the longest periods of industry expansion according to a new forecast.
The U.S. commercial property market has been expanding since 2010, following a sharp downturn during the recession.
Industry leaders surveyed by the Washington, D.C.-based Urban Land Institute are anticipating the current property market boom will continue through at least 2017.
“Real estate pros predict three more years of smooth sailing for U.S. real estate,” the Urban Land Institute’s William Maher said in the report released Wednesday. “The forecast represents almost the perfect combination of strong economic and property market fundamentals, combined with an orderly wind-down of monetary stimulus.”
The Urban Land Institute surveyed 43 of the industry’s top economists and analysts for its new Real Estate Consensus Forecast.
The outlook report predicts that demand for real estate, particularly office and apartments, will remain strong through 2017.
Commercial real estate transaction volumes are forecast to rise this year and in 2016 to almost twice the 14-year annual average.
The ULI forecast is good next for Dallas, which is one of the top commercial property markets in the country due to the areas record job growth and population gains.
Steve Brown, The Dallas Morning News