More investors than investment opportunities exist, but the up cycle is nearing its end. While core market pricing has held steady since 2015, for the past 18 months a softening in secondary markets has occurred. This slump may preview what will happen in all markets. For example, higher yields are available in suburban office parks, although the flight to the urban center to attract millennial talent may start to shift this dynamic.
Overall, multiple metrics and indicators suggest that commercial real estate properties are in or nearing a late stable stage of the market cycle for most property types in nearly every local market. Many property types in markets such as Washington, D.C., and Houston appear to have...Read entire article here.