SHERMAN OAKS, Calif.--(BUSINESS WIRE)--Woodbridge Wealth, an alternative financial solutions firm that creates opportunities for financial advisors, family offices, and high net-worth individuals, today debuted its highly anticipated inaugural Commercial Real Estate Outlook, a comprehensive report compiled from industry-leading research.
The multi-faceted first quarter report outlines numerous components of the commercial real estate market, including REITs, construction, single-family homes, apartments, hotels, office, industrial, and retail. Beyond this, the report evaluates the first quarter’s economic environment as a backdrop against which the commercial real estate market should be viewed.
The report details how demographic shifts and the adoption of new technology have started to influence the US commercial real estate industry. Increased demand for apartments and single-family homes from millennials has increased homebuilder confidence and strengthened the markets. Meanwhile, the hotel and office sectors have drastically cooled due to new competition and a decrease in new office developments.
“It’s important for our clients to know what’s occurring in real estate and in the broader markets that could impact real estate. The report provides a comprehensive summation of the commercial real estate arena in a way that will help individuals make more informed choices,” said Dayne Roseman, Managing Director of Woodbridge Wealth. “Woodbridge will continue to be a resource of executable information for its clients in every way possible.”
Industrial Real Estate Continues to Excel
The report shows that industrial real estate continues to be a favored sector, rating highest among investors for opportunity among all commercial real estate property types. This is driven by the rapid growth in metro regions such as San Francisco and Portland.
Other sectors, like retail and hotels, have been struggling to adapt to the effects of digital disruption. For retail, e-commerce continues to grow in popularity, which is decreasing traditional retail demand. Similarly, for hotels, a growing trend in shared lodging, which is driven by popular companies such as Airbnb, are offering an increased variety of choices for travelers.
Other Findings from the Report Include:
- Rate rise: interest rates have already been raised this year and they are likely to be raised again. A second-rate increase will affect mortgage rates, which should be taken into consideration when investors are looking at their portfolio. The office sector outlook remains mixed – many institutional investors believe 2017 could be the peak of the economic cycle, meaning it could be a good time to reduce the office portion of their portfolios.
- Rising: compliance costs - new lease accounting and revenue recognition standards are expected to increase the compliance and administrative costs for REITs and engineering and construction companies.
You can find the complete first quarter’s Commercial Real Estate Outlook report here.
About Woodbridge Wealth
Woodbridge Wealth is an alternatives financial solutions firm that creates opportunities for advisors, family offices, and high-net-worth individuals. The management team at Woodbridge Wealth has more than three decades of industry experience and has closed more than $1 billion in financial transactions. It helps countless clients realize strong returns with lower-risk products without the burden of long-term commitments.