Expectations and market realities 2018
Stability in a risk environment
The US economy, building on the momentum of an often sluggish but long recovery since the Great Recession, grew at an annual rate around 3 percent by the end of the year. Unemployment fell during the year even as inflation remained low by historical standards. The Dow, the S&P, and Nasdaq soared to record levels throughout the year. Reasonably strong US economic growth is expected in 2018, thanks to the corporate and individual tax cuts passed in December, and to the Trump administration's continued commitment to reducing government regulations.
Geopolitical uncertainty will continue to weigh on investors’ minds, but the focus has turned toward a number of positive economic indicators and the continued optimism over tax reform. Despite this confidence, the commercial real estate market may be beginning to slow from its peak. Many experts continue to feel that fundamentals are still strong with low vacancy and solid rent growth expected for at least the next year, but market participants should look to take advantage of high prices and strategically shift their portfolio allocations to better capture market potential.
Read more about the Expectations and market realities in real estate 2018.