Publications

- January 1, 2017: Vol. 29, Number 1

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It’s the economy, stupid

by Loretta Clodfelter

The uncertainty about the year ahead is pushing many in the market to take a wait-and-see approach. But even in a time of abundant caution, industry participants identified several investment strategies for commercial real estate investors. One of those strategies is focusing on markets that have had above-average economic growth.

“We need to focus on those areas where there is stronger economic growth,” says Dennis Lopez, global CIO of AXA Investment Managers – Real Assets. “Those are cities.” Lopez notes the areas with the strongest economic growth are typically 24-hour global cities. “These cities tend to outperform their countries in terms of economic performance.”

Economic growth has gone hand-in-glove with employment growth, and investors need to pay attention to the markets that will continue to grow in the year ahead.

“Employment gains have continued for six straight years, though the pace of those

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