Prospects for the 2017 U.S. commercial property still market look good, to hear the majority of real estate folks tell it.
Certainly Dallas is in the biggest building boom it’s seen in almost three decades.
But a lot of the industry’s executives are looking over their shoulders, fretting about everything from rising interest rates to a flood of capital coming into the U.S. property sector.
“There is maybe a little more caution in the market,” Andrew Warren, head of research for Pricewaterhouse Coopers, said Wednesday at a Dallas meeting of the Urban Land Institute, the country’s largest commercial real estate organization.
“The market may be taking a breather,” Warren said. “People still feel like 2017 will be another good year for transaction volumes — maybe a little less activity and fewer buyers showing up at the table.”
More than 80 percent of U.S. real estate executives said they are positive about property conditions around the country in 2017, PwC and the Urban Land Institute found in their annual Emerging Trends in Real Estate survey.
But there’s an underlying nervousness.
“The last couple of years, there is opportunism in the market, but everyone is also looking forward,” Warren said. ” ‘Things have been going good for a long time; should I be careful?’ “
Some of the worries for the development business Warren red-flagged included rising construction costs, the potential for higher finance costs and affordability concerns for the housing markets in many U.S. cities, including Dallas. Read More >