Economic recovery continues as office, industrial, retail expected to see gains.
Commercial rents in office, industrial, and retail spaces are expected to see moderate growth in 2016, according to new research. The 2016 Real Estate Market Outlook from CBRE projects that while global rents will rise by 2.2% annually and global GDP will grow, most U.S. office markets will tighten in the coming year. Researchers are quick to note that this is highly dependent on job growth in industries using offices and will necessarily fluctuate between markets.
With total retail sales expected to grow by 3.3% in the U.S. and e-commerce leading the way with 13% growth, U.S. retail is expected to see gains as brick-and-mortar locations begin to utilize technology such as smartphone apps and social media to compete with e-commerce offerings. The explosion in e-commerce is also projected to affect the industrial sector, with more developers looking to small facilities to help meet consumer demand.
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