Fears of an oil oversupply, concerns about the ability of monetary policy to boost inflation and worries about China’s slowing economy are all stoking instability in financial markets. Though global financial markets have shown substantial volatility for these and other causes, it’s nonetheless rational to believe that U.S. commercial real estate will hold up well, according to a brand-new report from Savills Studley.
In the report, the company’s chief economist, Heidi Learner, focuses on four reasons for optimism:
- Further appreciation of the U.S. dollar hikes returns for overseas investors.
- In troubled times, CRE’s very illiquidity can be an advantage.
- Recent changes in the Foreign Investment in Real Property Tax Act of 1980 are favorable for foreign investors.
- U.S. index investors might need to rebalance by adding CRE to their portfolios.
Let’s look at each of these four factors more closely...Despite Shaky Market, Savills Studley Optimistic About US CRE
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