The current U.S. economic cycle is the longest in the nation's history, and despite a slight slowdown, the economy is continuing to expand at more than 2.0 percent annually. A recession is unlikely in the coming year, but the market might see a mild downturn, according to Richard Barkham, global chief economist with real estate services firm CBRE. In fact, Barkham says he is seeing the most resilience in the U.S. office market in 40 years.
“This has been a long, slow cycle, driven by tech to a large degree, but the office sector did not overbuild.”
Based on insight supplied by Barkham, as well as Alan Pontius, senior vice president/national director with Marcus & Millichap, and Greg Kraut, managing partner with KPG Funds, a real estate private equity platform, NREI has selected the following office markets as the most likely to show resilience in the event of a recession or a downturn.