CBRE Research | 2018 U.S. REAL ESTATE MARKET OUTLOOK
Despite continued economic growth, the outlook for commercial real estate in 2018 is cloudy as the cycle enters its late stages, with policy uncertainty—particularly regarding corporate tax reform and the direction of interest rates—looming large. In times like these, “agility” is more important than ever for investors and occupiers.
INDUSTRIAL: AGILE BY ASSET TYPE
Big-box warehouses are in their golden era, from tenant and capital demand perspectives. The good news is that all megatrends point to this continuing, but it has gotten to be very expensive to build or buy big-box. The better news is that the golden era of industrial is now expanding into smaller, last-mile facilities near high-density urban centers, and this opportunity is only now garnering institutional attention. Institutional-grade industrial real estate doesn’t have to be big-box anymore. It can be a strategically located box and, with omnichannnel, it may not be “industrial” at all, but a hybrid retail/industrial facility.
The report also discusses:
The Outlook for 2018
Industrial & Logistics Retail