Second Quarter Market Analysis 2017
07 18 2017
Throughout the world, 2017 has proven to be just as tumultuous as 2016 was. From Donald Trump’s administration in the U.S. to the effects of numerous elections in Europe and across the world in the past two years, the headlines have come at a breakneck speed. In Q1 of 2017, questions swirled about the effects on the commercial real estate investing field when the dust finally settled (if that ever happened).
We dove into this coverage in our First Quarter Real Estate Outlook 2017, providing an overview of the commercial real estate industry, various sector outlooks, the economy, and legislative news. With another quarter, however, comes many more updates we felt were important to anyone in the commercial real estate investing field, whether financial advisors, commercial real estate investors, or simply wealth-minded savers.
We're excited to explore a new set of information and updates with you - with a slightly different approach - in our Q2 Market Analysis.
Will Private Money Save Commercial Credit in the United States?
This is the question at the core of our analysis. And there's good reason for it.
It’s difficult to believe that nearly 10 years have passed since the market crash of 2008, but in even 2017, you can still hear its echoes in the real estate market. Interest rates are, for the first time in years, consistently rising. The economy seems to be growing stronger, and Republican lawmakers appear to have recession-era financial regulations in the crosshairs.
At the same time, these regulations are still in place. Banks continue to feel skittish about lending, making commercial credit just as difficult as ever to secure. As banks have tightened standards, private lenders from the U.S. and abroad have rushed in to fill the gaps, providing funding for developers, investors, and institutions.
Our Q2 Market Analysis investigates how private money has aided commercial credit in the U.S., its impacts, and the outlook of private money on the future of the commercial real estate market.
Q2 Market Analysis: A Summary
Our analysis is divided into four major sections:
Section 1: Will Private Money Save Commercial Credit in the U.S.?
Our first section covers the above analysis, setting up the context for the commercial real estate market in 2017, posing our central question and diving into the key factors within the market.
Section 2: Commercial Real Estate Major Headlines From Q2
The second section contains a roundup of the major headlines in Q2, complete with statistics from the U.S. economy, details on the Federal Reserve's June rate hike, and the U.S. House of Representatives' passing of the Financial Choice Act. This section covers the key players, details of the changes, and the implications of each headline on the commercial real estate market.
Section 3: Case Study: The Effect of Chinese Private Lenders on CRE
In the third section, we take on a private money case study: Chinese private lenders on the commercial real estate market. While U.S. private lenders have provided funding where many traditional lenders have shied away in the past few years, a growing number of foreign investors have found harbor in U.S. markets.
Section 4: The Future of Private Money Investing & CRE
Our final section is dedicated to exploring the future of private money as a bridge for commercial credit – beyond 2017. This covers the potential upsides as well as the potential downsides, and the outlook for private money should loosened regulations under the Trump administration cause banks to loosen their restrictions.
The Analysis and You
Research is key to success in the commercial real estate investing sphere. Whatever your personal goals, finding and consuming knowledge resources related to the markets can make a big impact. There's a lot to follow, and breaking it all down can be difficult. We always want you to have access to industry insights and the tools to let them work for you. We hope you enjoy our Q2 Market Analysis, downloadable at the link.
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