Economic Downturn?
Is the economic downturn on its way? In the National Real Estate Investor, July, 2019 there were a number of different articles written by different authors but all pointing in the same direction for 2020 – down… Elaine Misonzhnik started it off on page 6, discussing industrial real estate “…while e-commerce growth will continue to drive the need for warehouse and distribution space over the next five years, the heavy construction pipeline combined with a potential economic slowdown will result in demand growth that will likely fall below 1% annually.” On page 8 regarding commercial bank loans, “there could be greater risk exposure emerging among some banks that has the potential to snowball into bigger problems in the event of a downturn.” Even the hotel sector may be affected. On page 12, “The hotel sector will experience a decline in demand in 2020 and 2021 marking a delayed mimicking of the anticipated deceleration of the national economy.”