The U.S. Early Indicators report is a simple early warning system designed to alert us to changes in economic conditions, as well as property and debt markets. Through the final months of 2016, commercial real estate entered "fairly valued" territory relative to coporate debt, as corporate bond yields spiked. Private real estate returns continued to edge upwards, while listed sector returns were negative. Leading economic indicators point to continued moderate economic growth through early 2017. Spreads widened through the final months of the year, and given the steepness of the yield curve, the risk for a near-term recession remains low. Commercial and industrial lending continued to grow but at a significantly more modest pace relative to earlier in the cycle.
Source : CBRE Global Investors