Real Estate Cycle
A great article for those interested in where we might be in the current real estate cycle. Are we at the beginning of a multi-year boom? Are we nearing a turn back down?
What to Expect in 2016
Commercial real estate should have another productive year in 2016, although more disciplined monitoring of metrics will be important. New multifamily construction activity will be met with greater scrutiny in certain markets. Many lenders are already exhibiting more caution and discipline in response to the slowing U.S. economy, energy volatility, and anemic growth worldwide.
The Beige Book’s insights are valuable; however, the broader takeaway is that we’re late in a commercial real estate recovery and expansion cycle. As a result, there may be some friction between credit discipline and the need for growth. Those in the industry who do their homework can avoid repeating the mistakes we’ve learned from in the past by focusing on fundamentals and watching out for that warning track.
Read the full article here for much more detailed analysis: http://www.multifamilyexecutive.com/business-finance/where-are-we-in-the-development-cycle_o