‘A Positive Impact' on CRE Fundamentals

NEW YORK CITY—The outcome of what many see as a pivotal race for the presidency is just one of the factors creating uncertainty in 2016. Among other considerations, there are also questions about the health of the job market and concerns about the impact commercial real estate prices will see from the Federal Reserve’s decision to end its longstanding zero interest rate policy. In spite of these uncertainties, Integra Realty Resources says it remains bullish on commercial property sectors, “because institutionally we understand that while the US economy is changing, the people and economic institutions continue to be innovative and enthusiastic.”

In fact, IRR is predicting “a positive impact” on rents, occupancy and values due to increased job creation. As evidence, IRR’s annual Viewpoint 2016 report cites the continued “robust” pace of cross-border investment into US CRE, currently double the pace of 2005. That pace will be maintained as “home office wealth” continues to migrate family money directly into US real estate investment.