Different Landscape

Robin L. Webb, CCIM, - 2017 CCIM Institute President

As the U.S. enters a new political era, commercial real estate will be one of the many industries profoundly affected by Republicans at the reins in the White House and Congress, as well as by recent governmental initiatives abroad. 

“Despite some short-term uncertainty as new economic policies are implemented, the U.S. commercial real estate industry will continue to expand and be viewed as a safe haven for both domestic and international investments,” says 2017 CCIM Institute President Robin L. Webb, CCIM, managing director  and principal of NAI Realvest in Orlando, Fla.

He expects commercial real estate to continue its appreciation while rents rise in all property types throughout the U.S. Additionally, Webb predicts better than average vacancy and occupancy rates in most sectors.

“We will likely see a gradual increase in mortgage rates, although debt may remain constrained due to Federal Bank policy implementation,” Webb says. “New development will be a function of the capital markets.”

He also foresees a continued tightening of cap rates, along with a rise in interest rates. How quickly these changes will occur will depend on the lending market, particularly if rates go up and help to loosen lending requirements.

Advancements in technology and suitability of properties will continue to change how the commercial real estate industry does business. “Real estate professionals must be alert to changing content and fundamentals, technology, and environment,” Webb says. “As more competitors enter the field, it will be education, technology, and networking that will be crucial for CCIM members and designees to staying competitive.”

Ultimately, the commercial real estate industry is driven by relationships within the industry. “While we talk and hear about technology, most transactions are completed through trusted relationships,” Webb says. “This trend will get even tighter as fewer properties are available in the current cycle.”

As CCIM Institute celebrates its 50th anniversary year, the CCIM designation continues to become the global standard for professional achievement in commercial real estate.

“As CCIM Institute continues to facilitate connections and business opportunities both locally and globally, speaking a common commercial real estate language becomes vital to developing trusting relationships,” Webb says. “The CCIM education and designation, whether earned in the U.S. or globally, allows CCIMs to speak a common language and build those relationships.”

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