After a run of more than 10 years for the bull market, there are signs that the U.S. economy is slowing down. The latest evidence is a drop in third-quarter GDP growth to 1.9% from 2% in the second quarter.
Is that slowdown also affecting the commercial real estate markets? Maybe so, but there are moves savvy investors can make in order to maximize opportunities in real estate, according to the panelists in TheStreet's free CrowdStreet webinar - Investing in 2020: Is Commercial Real Estate a Bright Spot Amidst Slowing Growth?
Joining host Katherine Ross from TheStreet were Brent Hieggelke, chief marketing officer of CrowdStreet; Townsend Baldwin, portfolio director of Stockwise Capital Management; and Jake Velaquez, director of commercial Leasing at Compass Commercial Real Estate.
Hieggelke said lower interest rates affect the commercial and residential real estate markets differently.
"In the commercial real estate sector most of the projects that we're working with are longer-term projects and a lot of the developers have long-term relationships with lenders all over the world," Hieggelke said. "Those aren't quite as reactive to the (Federal Reserve's) moves on a month-by-month basis."
The U.S. central bank has cut interest rates three times this year to support the U.S. economy but has signaled it would pause for the rest of 2019 unless it sees a slowdown.
Residential real estate, meanwhile, is "always a great place to be" because it is a hedge against inflation, according to Baldwin.
"The great thing about residential is you're always going to have inflation and people need a roof over their house. So what bill are you gonna pay first? Probably going to pay your residential bill, right? And so it's very recession proof and it's a great place to be," he said.
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