Is the current cycle reaching its end?
With national vacancies at an all-time low, the question arises, “have we reached the end of the real estate cycle?” No answer seems to stick, but many agree we have certainly passed the peak. The cycle has been dramatically prolonged by new regulations and cautious investors. The fundamentals of the economy continue to be in good shape, with many properties having equity invested rather than debt, as was the case before the Great Recession.
While we may not know exactly where we are, what we do know is that this means an influx of new activity and investors leaving the overpriced and over saturated primary and even secondary markets. Albuquerque offers the next frontier for these investors.
Key factors this quarter
- Economic fundamentals continue to be healthy and support continued market growth, extending the overall economic cycle.
- Primary markets have seen inflation of prices and extremely tight supply of inventory, making Albuquerque a logical next step for logistics users to expand.
- The first quarter of 2018 has seen an uptick in overall activity with competitive bidding on properties, new developments planned and expansion projects.