Tax, ’toppiness’ and the non-existent Trump bump. Just what is going on in the US real estate market?

2017-06-27

Whatever you might think of the US's new president, many expected his election to boost business and US growth in general. CBRE's Head of research for the Americas Spencer Levy said uncertainty in the US market was linked to a lack of clarity around latter. Something he feels less positive about now than he did earlier this year:"The big question in the States now is all around growth and can we grow," he says. "I was more optimistic three months ago about that than I am today. The linchpin...

Whatever you might think of the US's new president, many expected his election to boost business and US growth in general.

CBRE's Head of research for the Americas Spencer Levy said uncertainty in the US market was linked to a lack of clarity around latter.

Something he feels less positive about now than he did earlier this year:"The big question in the States now is all around growth and can we grow," he says. "I was more optimistic three months ago about that than I am today. The linchpin to being able to grow from the current 2% rate is the ability of the existing administration to pass stimulating fiscal policies, especially tax reform. So the reason why I am les optimistic now is that it has been a lot harder for that administration to get stuff done. I am not saying that was self-inflicted. I am not blaming any one.

On the commercial real estate side more specifically he adds that there are some markets showing signs of 'toppiness', namely the major gateway cities including New York, Los Angeles and San Francisco but added that certain sectors including multifamily (PRS) and industrial "the new retail and a rockstar for the last five years" were markets to watch.

Comments (3)