Meanwhile, in the United States most investors see at least one to two more years of affirmative economic activity overall with positive property fundamentals and strengthening rents, declining vacancy and minimal speculative construction in most markets.
Investors of all stripes, from the biggest institutions to the regional grocery-anchored retail manager see avenues for opportunity, but also the need to remain cautious. Investors of the highest caliber are finding themselves in bidding wars for the best properties across property types; compressing yields to record levels in key gateway markets, so cautious investors must remind themselves not to overpay for yield. Opportunistic investors must be cautious too.
Seven years into the up cycle, we can sometimes forget that this is a cyclical industry and those with exposure to leasing risk believe they will find it easier to manage in 2016 than 2017.