Monday, November 2, 2015

Macro Economic Conditions

Expanding payrolls, solid consumption growth and housing market momentum support economic landscape. Against this backdrop, the Federal Reserve anticipates lifting its benchmark rate for the first time in more than nine years during 2015, though a move may not occur until next year. The imminent increase in the Fed Funds rate has raised questions among commercial real estate owners and investors regarding its potential effect on borrowing costs, spreads and asset valuations. However, the relationship between rising interest rates, a strong economy and continued vitality in commercial real estate seems quite compatible.
Read more here.  

In this context, where are investors finding the best real estate investment strategies? I've been told that commercial real estate follows a ten year cycle: For six years it is all about apartments and multifamily, for two years it is all about condos, and for two years, it is all about playing golf. 

I think we may be in the playing golf phase right now....What do you think, dear blog readers? Leave your thoughts and comments here at this post.

Happy Investing! 


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