At this point in the cycle, investors should aim for a more “precision-based approach” to deploying their capital, says Dr. Peter Muoio, chief economist with online real estate marketplace Ten-X.
High pace of job growth and lack of competition from other investors should be top-of-mind considerations, says Spencer Levy, Americas head of research at commercial services firm CBRE.
Both experts contend that gateway cities continue to be good places for long-term investment. For shorter-term holds, investors should explore less crowded markets and markets with low development pipelines.
"Looking at markets with less development activities will alleviate cap compression,” says Muoio.
NREI consulted CBRE’s Annual Investor Intentions for the Americas 2017 survey, with the top 10 markets for investment presented here. We’ve also included insights from Ten-X’s spring quarterly update and thoughts from additional industry experts.