Commercial Real Estate News Wrap Up From Liberty SBF: June 21, 2016

June 21, 2016

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A storm of opportunity is growing in the CRE industry. Investment management firm Pimco reported about “a blast of volatility for US commercial real estate that we anticipate could lower overall private US CRE prices by as much as 5% over the next 12 months.” It’s not all doom and gloom, reports Globest.com. They say that the storm poses “attractive investment opportunities.” Pimco’s John Murray and Anthony Clarke co-authored the report, titled “US Real Estate: A Storm Is Brewing.”

For the economy, slow is the new normal. Fed Chair Janet Yellen said as much at the last Fed meeting when the agency decided against raising rates, surprising no one. Bloomberg reported that “growth has slowed, productivity has slumped and inflation is taking longer than expected to accelerate.” The sluggish economy is causing some to look askew at the Fed as it tries to downshift on the fly. St. Louis Fed President James Bullard said, “This mismatch between what we’re saying and what we’re doing is arguably causing distortions in global market financial pricing, causing unnecessary confusion for future Fed policy and eroding credibility.”

Ben Bernanke channeled Rodney Dangerfield saying that the current economic recovery isn’t getting any respect. According to a story on Globest.com, Bernanke acknowledged that there are concerns but “the economic picture is fairly robust,” he said. He pointed to two key commercial real estate markets helping to drive the economy: housing and retail. One part of the equation for retail is the omni-channel concept where online retailers use bricks-and-mortar stores as distribution and return centers as well as showrooms where shoppers can get their fix to see and feel products offline.

8+1 (That’s 9) Things You Need To Know

  1. Art becomes big factor in hotel and CRE
  2. Major change coming for Industrial
  3. Hot investment niches
  4. Emmitt Smith’s tips for CRE success
  5. CMBS market enters new era
  6. U.S. commercial, MF mortgage debt rises to $2.86T in 2016
  7. 5 huge infrastructure projects set to impact CRE
  8. Retail experts puzzle out shrinking store footprints and excess space
  9. Why CRE investors are feeling upbeat