The economic fundamentals for commercial real estate remained solid in Q4, with gross domestic product (GDP) growth of 2.1% matching the pace in Q3, according to data released by the Bureau of Economic Analysis. Construction of nonresidential structures fell at a 10.1% annualized rate.
“About half the decline in structures was from oil and gas rigs, but hotels and other commercial buildings also slowed,” said Calvin Schnure, Nareit’s senior vice president, research & economic analysis. “Importantly, though, consumer spending rose at a modest pace and is likely to support economic activity and CRE markets in 2020.”
(Contact: Calvin Schnure at firstname.lastname@example.org)