Glenn Mueller, professor at the Burns School of Real Estate and Construction Management at the University of Denver, joined REIT.com for a video interview at REITWeek 2016: NAREIT’s Investor Forum at the Waldorf Astoria New York.
The real estate cycle remains in a growth phase, according to Mueller. He explained that moderate employment growth in the United States has created “this nice continuous run of demand for real estate of all property types since the second quarter of 2010.” With the millennial generation coming of age, the current growth cycle could possibly be extended an additional four years, he added.
Mueller also noted that new supply is coming online “at about the right rate” in all sectors except apartments.
REITs are taking advantage of the current growth phase by raising rates and occupancy levels, and they are also benefitting from strength in the capital markets, he said.
Looking to the second half of the year, Mueller said he will be watching to see if a slowdown of the global economy weakens demand for real estate from foreign investors.