- Interest rates and cap rates remain low
- Inflation and unemployment remain low at about 2% and 5%, respectively
- New tech jobs are coming as Google and Bizness Apps locate facilities in San Diego
Despite low interest rates, low vacancy rates, and rising rents – record high prices, low cap rates and fears of a potential downturn have begun to hamper CRE investment. We still see promising (and less risky) opportunity in certain sectors though, such as industrial and residential.