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Los AngelesA recession is among the biggest concerns for apartment investors in 2020, but recent interest rates cuts could have stopped a recession from hitting in 2020. However, there are still expectations that the economy could slow next year, and investors are preparing to hedge against increased risk.

“It is difficult to say when a next recession might occur but borrowing from CBRE’s latest 2020 outlook, US GDP growth is expected to slow notably this coming year as various issues create higher levels of uncertainty, such as trade conflicts, slowing global economic growth and the upcoming elections,” Dan Blackwell, SVP at CBRE, tells GlobeSt.com. “But with the exception of any unforeseen developments, CBRE believes a recession can be avoided thanks to the positive effects of the Fed’s rate cuts in 2019. So, our firm foresees slow growth to continue into 2020, which will support already strong property fundamentals. Having said that, the market will cycle at some point and investors should always make sure they are not overleveraged and have plenty of cash available.”

Kelsi Maree Borland

Kelsi Maree Borland is a freelance writer and editor living in Los Angeles whose work has appeared in such publications as Travel + Leisure, Angeleno and Los Angeles Magazine.

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