X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

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.

More from this author

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2019 ALM Media Properties, LLC. All Rights Reserved.