Listen as CCIM Economist K.C. Conway shares his outlook on economic issues and how the may affect commercial real estate. Discussed in this video are expected interest rate hikes, inflation trends, risks, and opportunities. He thinks there will be 4 to 6 rate hikes this year and that one of them could be 50 bp. Doing the math, this would indicate rate increases of 125 to 175 bp. He notes that commercial real estate tends to do well during periods of inflation, but notes that at the moment expense growth is outpacing rent growth. He talks about ENR index construction cost increases and the impact. Supply chain logjams are discussed, the nature and location of them. He discusses his bullishness on industrial and multifamily property. He believes we are entering a 1970s like inflation era, noting similarities today versus that period. He sees a convergence of factors that we’ve not seen in four decades.
Any investor in commercial property would be well served by listening to this video.