Commercial Real Estate typically lags residential results by 6 months. Meaning as people buy homes, employment + business is trending up. Productivity, production and inventory are doing well. However when things turn down, business is still in production due to previous demand. It takes time for business to lower results, reduce production to lower demand. The best data to watch for shifts are employment and residential sales. Trends occur due to supply + demand. Excessive profits breed excessive competition. When demand rises, supply surely follows.  At some point supply exceeds demand and back we go again

Tags: supply and demand, commercial real estate trends, excessive inventory, productivity, production, commercial real estate results, excessive profits    

Posted: 7-03-2016 9:06AM EDT