Press Releases

October 04, 2018


Houston – With U.S. economic fundamentals showing fortitude against trade fears, interest rate hikes and diverging global economies, the tightening labor market appears to be the biggest threat to the pace of continued economic growth. In the latest edition of the BRIEFING, an economic report examining global trends and their impact on commercial real estate, Transwestern’s Chief Investment Officer Tom McNearney explains that to date, the national office and industrial sectors have performed well across most metros with construction balanced by absorption, but low unemployment is likely to keep future performance in check.

“Continued strong job growth coupled with increasing wages has fueled office and industrial real estate absorption across the country in 2018, and there remain billions in dry powder in the capital markets,” said McNearney. “Americans are benefitting from higher disposable income – particularly after tax – that has resulted in rising retail sales. This, in turn, has continued to drive the industrial sector.”

While the commercial real estate industry is expected to finish out the year strong, there are notable headwinds in addition to worker shortages. For example, industry disrupter WeWork has turned the traditional office leasing model upside-down, but has yet to turn a profit, and Moody’s announced it will discontinue rating WeWork’s debt because it lacks information to gauge its creditworthiness. Additionally, the trade deficit rose to its highest level in a decade during the summer, the U.S. Treasury had to increase borrowing to service the widening budget deficit, and interest rates are likely to climb.

Download the full report, including 20 fast facts for the big picture, at: http://twurls.com/briefing0918

ABOUT TRANSWESTERN

Transwestern is a privately held real estate firm of collaborative entrepreneurs who deliver a higher level of personalized service – the Transwestern Experience. Specializing in Agency Leasing, Occupier Solutions, Capital Markets, Asset Services and Research, our fully integrated global enterprise adds value for investors, owners and occupiers of all commercial property types. We leverage market insights and operational expertise from members of the Transwestern family of companies specializing in development, real estate investment management and research. Based in Houston, Transwestern has 35 U.S. offices and assists clients through more than 211 offices in 36 countries as part of a strategic alliance with BNP Paribas Real Estate. Experience Extraordinary at transwestern.com and @Transwestern.

Media Contact:

Stefanie Lewis

713.272.1266

stefanie.lewis@transwestern.com

twmediarelations@transwestern.com

Tom McNearney

Chief Investment Officer

Dallas, Texas

+1 (972) 774-2523