3 Factors Impacting Commercial Real Estate and Banking Trends

Crosstown Commercial Team  /   June 5, 2018

3 Factors Impacting Commercial Real Estate and Banking Trends

Multiple factors impact commercial real estate trends locally and across the globe. Planning ahead, here are 3 common issues that affect commercial real estate, commercial lending and the overall economy in general.

  1. With the Federal Reserve’s new leadership at the helm in Jerome Powell and inflation worries always a factor, watch for rate increases and the impact on the cost of borrowing as they relate to property values;
  2. New U.S. tax laws, tariffs, and a post-Brexit trade deal underway will have an effect on U.S. and future foreign lending for commercial real estate transactions and industries;
  3. With volatility in big and small box retail store closings and bankruptcies, the e-commerce retail segment will have greater needs for workers, distribution centers and warehouse space.

The ever-changing domestic and global climate signals speculation on economic trends for the remainder of 2018 and beyond. CEO of CrediFi, Ely Razin provides financial and technological data as it relates to U.S. commercial real estate and banking – you can read his full article for more details on these issues.  In the meantime, the expectation that the industrial sector is expected to continue to outperform all other commercial real estate needs is a good bet for the near future.

Contact Tim Little and Jim Starr, your trusted Crosstown Commercial Real Estate agents for a discussion on how this might affect your future investment plans: 952-432-4900.