April 11, 2016
Commercial property transaction volume is expected to decline over the next three years to $475 billion, according to the semi-annual Real Estate Consensus Forecast released from the Urban Land Institute (ULI) Center for Capital Markets and Real Estate. The positive side is that the decline follows six years of commercial property volume growth.
The Consensus Forecast for April 2016 is for continued economic growth between now and 2018, but at a slower pace than during the past two years. Commercial real estate price appreciation will continue, but at decelerating rates. The forecast also calls for declining rent-growth rates among all property sectors, with better-than-average vacancy rates, except for retail.
The ULI Real Estate Consensus Forecast is based on a survey of top economies and analysts who represent 36 of the leading real estate investment, advisory and research firms and organizations.