February 2019

Although it might seem that 2019 forecasts for commercial real estate investment represent a textbook study in Good News/Bad News predictions, there are some indicators that, at the very least, there are some reasons for concern. Although demand for housing is still high in most urban areas, so are prices and they continue to rise, but there are mixed signs across all CRE sectors.

Business, particularly retail sales, posted slowdowns at the end of 2018, and that is worrisome for CRE investors and developers. However, any current assessments might seem more like guesses than educated predictions backed up by facts, figures and identifiable trends. Part of the problem with forecasting this year is the mixed signals coming from almost every

The year just past was another good one for the multifamily housing market, according to all reports. But what lies ahead?

According to most market analysts, three perils will exert influence over what occurs in 2019:

• Interest Rates and Available Lending
• Supply
• Development Concerns

With continued volatility both on the political scene and in financial areas, even the experts tend to disagree somewhat on the forecast. Recent speculation about additional interest rate hikes may—or may not—have been put to rest. It seems too early to tell yet whether there is a continued balanced suppy of new apartment units or construction already underway will lead to an oversupply in specific markets. And, finally, the "known unknowns" in the