August 31, 2016
The U.S. economy is stable, despite sluggish global economies, according to Cushman & Wakefield’s U.S. Macro Forecast. Though the company’s economic growth forecast was revised downward to 1.6% in 2016 and 2.1% for 2017, consumer confidence and spending, along with low interest rates, remain intact.
“There is no doubt that slowing global demand did diminish trade and investment,” said Kevin Thorpe, global chief economist for Cushman & Wakefield. “However, as the second half of the year unfolds, we expect those categories to pick up steam, supporting stronger corporate profits, inflation and real GDP growth,” he added.
In the commercial real estate sector, total sales volume for all property types is forecast to be $449.6 billion this year, approximately 15%-20% lower than in 2015. The report goes on to say that office space metrics will slow, while demand for warehouse and distribution space will continue growing. Class A retail properties will generate positive rent growth.
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