In today’s commercial real estate news, NREIonline peers into the crystal ball and forecasts predictions for 2017’s financial and retail landscape. MarketWatch covers the current restaurant recession.
NREIonline lays out the three largest factors affecting commercial real estate financing in 2017. Interest rates will rise thanks to the Federal Reserve, but the increase will likely not significantly impact lending. Many sources of capital will create competitive lender economy. A new CMBS bill will squeeze some small lenders, but will ultimately lead to more cautious underwriting.
While the holiday season was decent for retailers, the overall market is still grim. The industry is likely to continue slogging through slow sales and store shutterings in 2017. Among some of the issues affecting retailers include mall tenants renegotiating leases as anchor tenants leave, the longevity of Class-A malls, and mall landlords thinking up ways to offer shoppers unique experiences.
While retailers are hurting, restaurants are taking an even larger bruising. The industry experienced declining sales in all four quarters last year. The last time this happened was 2009, following the recession. Higher prices on necessities means less money for individuals and families to dine out.