Real Estate Investors Ride Record US Economic Expansion
“Commercial real estate investors are among the biggest winners in the U.S. economic expansion, which reaches a record 121 months this week in a recovery from the country’s worst financial crisis since the Great Depression. But the milestone comes as transformation slams traditional retailers, technology disrupts office demand and suburbs lose their post-war grip on corporate America.”
So reports CoStar News Senior Staff Writer Randyl Drummer in a recent feature focused on the history of economic expansions in the US.
“The major commercial property sectors, office, industrial, retail and multifamily, reached all-time highs in rent growth since June 2009 when the U.S. economy began recovering from the recession,” Drummer reported. “The number of apartments under construction is now at an all-time record of 543,000 units, handily beating the prior decade high of 257,000 units under construction in 2000, while industrial construction is at a record annual high of 272 million square feet, beating the 242 million square feet being built in 2000 and almost double the 141 million under construction in 1999.”
He added that some of the largest commercial projects in U.S. history have taken place over the past decade, including most of the $30 billion rebuilding of the World Trade Center following the terrorist attacks of Sept. 11, 2001; the $20 billion Hudson Yards redevelopment in New York City, the $4.5 billion Transbay Transit Center and Salesforce Tower mixed-use development in San Francisco, and Apple Park, the tech company’s $3 billion “spaceship” headquarters in Cupertino, California.
“The big price tags, though, belie the sometimes wrenching shifts that have occurred within the industry during this expansion,” Drummer reports.
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