Many industry analysts expect further recovery next year

The commercial real estate recovery situation should improve.

Property management companies concerned about the economy may feel better about the commercial real estate market next year. This is because many industry analysts feel the recovery will continue at a steady pace next year.

Michael Bull, the host of America's Commercial Real Estate Show, recently interviewed Robert O'Brien, vice chairman of Deloitte & Touche. This revealed many issues with the market, but also several aspects that may help the situation improve in the next several months.

The multifamily market will likely be the strongest sector as next year progresses, O'Brien explained. After this, lodging may perform the second-best, while office, industrial and retail will follow.

"We have seen improving consumer confidence and improving consumer sentiment, which should be good for retail," said O'Brien while on the show. "But to some extent, that’s been offset by an increase in online sales, which is obviously having an impact on retail real estate."

There may not be a skyrocketing recovery situation next year, as the country's Gross Domestic Product should continue growing slowly. O'Brien noted that this will stunt the market's overall performance.

Market has many bright spots
Despite the caution regarding GDP growth, there is reason to be positive about the current conditions when looking toward next year. Bull explained in an article for National Real Estate Investor that the situation may improve, but it could also may help certain sectors.

The industrial market may improve markedly next year for several reasons. Bull noted that more Americans are purchasing products on the internet. This is helping the industrial market by expanding business for the sector and its companies. However, this is still hurting the retail sector, at the same time.

Values for all sectors should continue to jump next year, Bull wrote. This is something that should continue for the next several years, as well. Demand is expected to rise for properties with infill, while apartments should continue to gain tenants.

The multifamily market has already improved significantly in recent months. According to a report from the National Multi Housing Council, growth occurred in many aspects of the sector. Sales volume remained at a high level during the third quarter, while market tightness, equity financing and debt financing all had positive figures.

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