National economic fundamentals are continuing to improve, limiting some of the risks threatening fixed-income markets and commercial real estate, according to a U.S. property snapshot forward-looking report by Asieh Mansour, head of Americas research at CBRE Group, released today.
Real estate market fundamentals continue to improve across all sectors, the report says, boosted by the limited amount of new supply that has come online.
“This will be a year where property dynamics will shift to benefit investors relative to occupiers in terms of rent growth,” Mansour said. “Across many of the key markets, vacancy rates across most property types and across a large number of markets will continue to decline,” she said. Landlords will now be able to drive better lease terms.”
For core investors, property fundamentals will push operating income higher, she added. — Katherine Clarke