Weather Outside is Frightful, But Fundamentals Stay ‘Solid'

WASHINGTON, DC—In the near term, this winter’s weather has taken a toll on US economic activity. In the long term, economic fundamentals remain “solid” and the implications for the various commercial real estate sectors are favorable, Cassidy Turley says in a new report. Similarly, Fitch Ratings in a series of property-type snapshots said last week that the various sectors are stable or, at very least, stabilizing.

“The polar vortex, ice and snow storms in the South, colder than usual conditions in the Midwest and a major drought in parts of California all contributed in skewing a variety of indicators from job growth to home sales to retail sales—and pushed them artificially downwards,” says Kevin Thorpe, chief economist at Cassidy Turley. “But we need to take into account the seasonal distortions and not lose sight of the economic trajectory that began taking shape in the second half of 2013.”