In the meantime, the rental housing and office demand is getting a boost from the positive employment trend in the US. And this together with low oil prices have encouraged gains from consumer spending which strengthens the performance of sectors that produce goods and services.
According to Investor Daily, TIAA-CREF's Phil McAndrews has recently stated that the United States economy is under fairly good state that tantamounts to the continuing optimistic forecasts for the commercial property segment. TIAA-CREF(Teachers Insurance and Annuity Association - College Retirement Equities Fund) is a financial institution that provides retirement platforms for people who are in the academic, research, medical and cultural industry.
The Federal Reserve reportedly was complacent with the increase in interest rates in September but the decision was due to low inflation and global concerns.
According to Investor Daily, basing on the NCREIF Property Index, the total yields from commercial property market are on course of achieving a six consecutive calendar years where double-digit performance was observed since the global financial crisis. There is growth observed in the latest survey executed by Pension Real Estate Association in the U.S., making analysts see positive views.
It's considered normal to assume that the real estate sector is on the way up but it has been a fact that real estate cycles do not really follow a definite pattern or timeline. They don't cease to exist out of natural causes. In 2008, during the financial crisis, properties are held with low levels of control.
According to Investor Daily, but even if real estate cycles have an erratic schedule, the cycle that the U.S. is experiencing right now seems to bring positive results but it should also be noted that the current cycle may be influenced by factors like low interest rates, declining vacancy rates, rising rents and modest new construction. And as the cycle mellows growth in the net operating income is believed to the driving factor in property investment trends.