No Reason Yet to Fear a Bubble, CRE Industry Pros Say

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CRE valuations, costs and financing trends show healthy growth, not bubble conditions Rising property valuations, construction costs and capital market trends are heightening existing fears that the commercial real estate industry is in a bubble, but these fears are misplaced, experts say. Rising labor costs will be recouped through consumer participation in the economy, which in turns leads to continued strong fundamentals, NAREIT’s Calvin Schnure says. Financing also remains in check, Schnure adds. “Looking at the seven years that have passed, the industry has been largely refinancing existing debt, while it has been slow to increase the amount of new…

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