Principal Asset Management has released its U.S. Real Estate Sector Report, touching on performance and implications for a number of key property types and sectors.
In terms of the apartment sector, Principal Asset Management is beginning to see stabilization in market fundamentals. Strong demand is starting to offset supply-side issues that have troubled several Sunbelt markets. Although rental trends remain flat, there are signs that the pricing pendulum may be shifting in favor of landlords.
For hotels, Principal Asset Management sees sector performance as generally healthy, with occupancy rates stabilizing above historical trends. Demand across leisure segments has underperformed, however, as weaker labor dynamics have affected consumer discretionary spending.
The industrial sector continues to face dual headwinds of slower demand and strong new supply. But net absorption has rebounded from its early-year decline, as both ecommerce retailers and thi