ULI: Spring 2020 Economic Forecast

In lieu of a Spring meeting (due to Covid), ULI has released their three-year forecast for 27 economic & real estate indicators. They cover forecasts for broad economic indicators, real estate capital markets, property investment returns, vacancy rates & housing starts/prices.

  • CRE transaction volume is expected to be over 50% lower in 2020.

  • CRE property values are expected to drop by 7% on average in 2020.

  • Net returns on institutional CRE assets is expected to be -5% in 2020.

  • All asset types are expected to see increases in vacancy, with industrial faring the best and office/retail faring the worst in 2020.

  • Rent growth is expected to be flat for industrial in 2020 while retail is expected to fall by -8.2% on average.

  • Single family housing starts are forecasted to fall by 27% in 2020, which should help stabilize any potential fall in prices.

FYI: You must be a ULI member to view the linked forecast media

#ULI #Covid19 #Economy #SpringEconomicForecast #Forecast #Retail #Office #Multifamily #Industrial

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