U.S. commercial real estate, including Philadelphia commercial real estate, has managed to climb out of the deepest economic trough in more than 70 years. In the long term, the evidence suggests that it will keep on climbing.
That’s not to suggest that the climb for Philadelphia office space, Philadelphia retail space, Philadelphia industrial space and other Philadelphia commercial real estate listings will be steep from here, or that there’s open-ended potential for ever-increasing gains in all metrics.
For example, the recent Consensus Forecast released by the Urban Land Institute – and circulated by Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker and Philadelphia commercial real estate brokerage firm specializing in Philadelphia commercial properties – predicted that U.S. commercial property investment sales volume would reach $470 billion this year and $500 billion during both 2016 and 2017.
ULI’s most recent consensus of 43 industry economists noted upward revisions from six months earlier. The prediction for transaction volume, to cite one example, was revised upward from the October 2014 projection of $25 billion for this year and $445 billion for next year. This appears to be good news for Philadelphia office space, Philadelphia retail space, Philadelphia industrial space and other Philadelphia commercial real estate listings and also bodes well for U.S. commercial property and U.S. commercial real estate.
Gross Domestic Product growth similarly is expected to peak at 3.0% for each of the next two years before tapering off to 2.8% in ’17. Each of these years, however, will represent the first time this metric has exceeded the 20-year average since ’10, when it rebounded—weakly—from a 2.8% decline the year prior. This portends better times for Philadelphia commercial properties and Philadelphia commercial real estate.
“It is always difficult to predict with any precision when an expansion will come to an end,” said chief economist Kevin Thorpe, “but the latest data on confidence, jobs, debt ratios and capital flows shows there is little evidence to suggest the US expansion can’t on go for a lot longer. From a U.S. commercial real estate perspective, the odds are heavily in favor that expansion has a lot of runway left.”
For more information about Philadelphia office space, Philadelphia Industrial Space, Philadelphia retail space or other Philadelphia commercial or investment properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) or Leor Hemo(leor.hemo@wolfcre.com) or Lee Fein (lee.fein@wolfcre.com) at Wolf Commercial Real Estate, a premier Philadelphia commercial real estate broker that specializes in Philadelphia office space.
Wolf Commercial Real Estate is a Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.
Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with extensive expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philadelphia office space or new Philadelphia retail space with the Philadelphia commercial properties that best meets their needs. As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals. If you are looking for Philadelphia office space or Philadelphia retail space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.
