The outlook of the office and apartment commercial real estate sectors paints two different pictures, according to the latest research from Ten-X.
In the office sector, a broad national outlook obscures the bifurcation of two types of markets – ones that are lagging (the “left behinds,” as Peter Muoio, chief economist at digital real estate marketplace Ten-X, calls them), and others whose economies are strong (“hot markets,” in Muoio’s words).
While the office sector outlook is market-specific, there has been, with some variation, a nationwide trend in the apartment sector: a heavy influx of supply responding to steady but healthy demand and extremely low vacancy rates, resulting in strong increases in rent.
A multitude of factors is contributing to these trends on a macro level, including the evolving workspace dynamic, the economic outlook under the administration of President Donald Trump, and the aging of millennials.
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