{"id":12822,"date":"2017-02-28T13:58:49","date_gmt":"2017-02-28T18:58:49","guid":{"rendered":"https:\/\/qa.bluevaultpartners.com\/?post_type=news&p=12822"},"modified":"2017-02-28T13:58:49","modified_gmt":"2017-02-28T18:58:49","slug":"cre-outlook-steady-as-she-grows","status":"publish","type":"post","link":"https:\/\/qa.bluevaultpartners.com\/cre-outlook-steady-as-she-grows\/","title":{"rendered":"CRE Outlook: Steady As She Grows"},"content":{"rendered":"
February 24, 2017 | by\u00a0PAUL BUBNY<\/a>| GlobeSt.com<\/p>\n WASHINGTON, DC\u2014Stability and decent yields will continue to underpin the commercial real estate sector this year, according to the National Association of Realtors\u2019 quarterly commercial real estate forecast. A key theme for 2017 is the growing demand in smaller markets.<\/p>\n \u201cSimilar to the biggest ongoing challenges in the residential market, supply and demand imbalances continue to put upward pressure on commercial property prices as investors search for yield in smaller markets,\u201d says Lawrence Yun, NAR\u2019s chief economist. \u201cRealtors are increasingly citing inventory shortages as their top concern as the pace of new projects slows in large cities and middle-tier and smaller markets see a growing appetite for space.\u201d<\/p>\n Yun notes that commercial property prices surpassed pre-crisis levels last year because of aggressive bidding and lower inventory levels, especially when it comes to class A assets in the larger markets. However, he adds, with the Federal Reserve expected to raise short-term rates three times\u2014and possibly more\u2014this year, a minor price correction may be in the offing as cap rates move higher.<\/p>\n<\/p>\n