Outgoing Federal Reserve Chair Janet Yellen said U.S. stocks and commercial real estate prices are elevated but stopped short of saying those markets are in a bubble.
“Well, I don’t want to say too high. But I do want to say high,” Yellen said on CBS’s “Sunday Morning” in an interview recorded Friday as she prepared to leave the central bank. “Price-earnings ratios are near the high end of their historical ranges.”
The digital transformation is more than just another buzzword. As the millennial workforce prepares for middle age, Gen Z is now also entering the workplace and continuing the drive for better technology and mobility. The future of commercial real estate is forcing landlords to evolve and meet a new set of tenant demands.
Austin Tx One Of The Top Markets For CRE Investors
Where the city seems to be bucking the trend, however, is in future construction. After a banner year in 2017 (Austin saw the construction of more than 2.5 million square feet of office space last year), the Capital City is actually poised to slow down on construction projects over the next 12 months. Though only 1.8 million square feet of commercial office space is on the docket for 2018, it does represent a 3 percent growth in available inventory, making it a prime spot to invest.
Economists are optimistic about this year’s commercial real estate investment activity following a tumultuous 2017 that saw investment levels falter in some sectors while others witnessed massive growth. Here are the five commercial real estate sectors expected to experience solid progress in the year ahead, according to the Sarasota Herald-Tribune.
As technology continues to advance, multifamily developers and tech providers are adjusting and preparing buildings to pull in a new generation of tenants. “It’s about making the resident’s life better,” CityView Director Stephen Anderson said. Anderson said his company is developing a multifamily property in Little Italy in San Diego that is not near a grocery store. The company is exploring partnering with an online delivery service and creating refrigeration lockers in the building.