As we finalized this quarter’s publication, the US was named the most competitive economy in the world, corporate earnings by Wall Street firms substantively surpassed expectations, US job openings topped seven million for the first time, and manufacturers increased their capacity for the 16th straight month. All of these factors, we believe, provide continued support for our view of an elongated real estate cycle and incremental deal activity.
And, in addition to this positive backdrop, we continue to see catalysts in the market that if unabated will provide tailwinds to sector deal activity for some time to come. These include the tax and social benefits provided through opportunity zones, the acceleration of capital activity being allocated to the intersection of technology and real estate, the quantum and availability of private equity capital, and the continued penetration of nontraditional debt capital sources. As a result, absent a market shock arising from geopolitical factors or monetary policy, our outlook remains positive.
“We continue to see catalysts in the market that if unabated will provide tailwinds to sector deal activity. Of note, is opportunity zone activity and the possibility of $100 billion of volume based on recent comments by Treasury Secretary Mnuchin.”
US Real Estate Deals Leader, PwC US
Tel: +1 (202) 841 0059
US Real Estate Acquisitions Leader, PwC US
Tel: +1 (617) 530 5256