As a company that operates with an increasingly global mindset, our strategic alliance with BNP Paribas Real Estate furthers our continued efforts to extend our integrated real estate services capabilities internationally. Earlier this year, I joined BNP Paribas Real Estate UK experts as panelists for the Capitalize Prospects Seminar at the National Gallery in London to discuss politics, international economies and the strength of overseas investor interest in real estate.
Here are a few highlights and key takeaways from our discussion:
- While the first three quarters of 2018 were robust in property sales and transactions, the fourth quarter was much slower. This downtick we’re seeing in the U.S. could be attributed to the economy’s gradual deceleration and political discourse.
- Despite a slow fourth quarter, we have an optimistic outlook for 2019 because U.S. real estate fundamentals are good. We are close to all-time low vacancies in all product types, construction is down, and our job market is healthy.
- The office sector: The U.S. is experiencing a war for talent, which is driving building owners to upgrade their facilities and add competitive amenities to accommodate the growing workforce demands.
- The industrial sector: E-commerce is driving demand for last-mile fulfillment centers near urban consumers. Many investors are looking to add more industrial product to their portfolios and are considering the effectiveness of repurposing older buildings to meet these needs.
- The multifamily sector: As our workforce continues to grow, so does our need for workforce housing. Micro-unit apartments have been particularly well-received in markets where housing costs are out-of-reach for millennial workers.
- The healthcare sector: We are seeing significant consolidation of traditional healthcare providers. In 10 years, it is expected that we will have half of the big hospital systems that we have today. For convenience, cost and customer experience, more full-service clinics are developing near residential areas.
Watch the video below for an overview of the U.S. commercial real estate market.
– By Mark Doran, Chief Opperating Officer