Commercial Real Estate Growth to Continue Over The Next Three Years
With the U.S. economy expected to experience continued expansion over the next three years, the commercial real estate (CRE) industry is also projected to continue to grow, according to a recent ULI Real Estate Economic Forecast that covers 27 economic and real estate indicators, and forecasts received from 45 economists/analysts at 33 real estate firms. The projections were based on the median of all forecasts received.
The survey forecasts growth, albeit at a slower pace than previous years, at 5 percent in 2019, 3.7 percent in 2020, and 2.8 percent growth in 2021, with projected transaction volume, which was $562 billion in 2018, to be $535 billion in 2019, and decrease to $480 billion by 2021.
For a comparison of the next three years’ projections with the previous seven years, see the graph below, which shows the total commercial real estate volume over all major CRE sectors for the previous seven years.
Sources: https://urbanland.uli.org; Real Capital Analytics; http://www.creentrepreneur.com
