Colliers Predicts Continued Economic Expansion in 2018
In the recent report “State of the U.S. Market and 2018 Outlook,” Colliers International’s analysts state “the best years of the property cycle are now behind us,” but they are not ready to pronounce an end to the current economic expansion period. Key takeaways from the report include:
“Faster economic growth and strong job growth will continue to provide a firm foundation for solid property fundamentals in 2018. However, stubbornly weak wage growth will limit gains for the multifamily and retail sectors.”
“The industrial sector will continue its star turn as the best-performing property type, and the sector most desired by investors. Much of its success is at the expense of the beleaguered retail sector, where the shakeout will renew in force after the holiday season.”
“Supply and demand dynamics in the office sector should remain broadly in tandem next year. But the uptick in GDP, and potentially job growth, should spur more need for office space.”
“Though property markets likely peaked for this cycle in 2015, both leasing and sales transaction activity remain robust and pricing firm. But price appreciation and rent growth will continue to slow in most markets.”