Commercial Property on Track to Top 2006 Volume

Survey says commercial tranactions will hit $430 billion in 2016.

Commercial property transaction volume in 2016 will exceed 2006 levels, reaching $430 billion, according to a U.S. real estate forecast released Tuesday.

The latest outlook from the Urban Land Institute and EY (Ernst & Young), covering 2014 through 2016, projects steady growth for the U.S. economy sustained strength from real estate capital markets and continued improvement in both commercial real estate fundamentals and the housing sector.

The findings are based on a survey of 39 leading industry economists and analysis conducted between Feb. 19 and March 14 to gauge their sentiment about the direction of the real estate industry. The forecast reflects consensus reached on 27 economic and real estate indicators.

A statement accompanying the latest forecast noted that it was more optimistic than the previous one from October. Although survey respondents moderated their expectations for the housing sector — housing starts will remain below the 20-year annual average through 2016 — the overall industry outlook remains positive.

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Source: ThinkAdvisor