The U.S. economy and property markets withstood a very turbulent 2016, and they are positioned to perform well in 2017. According to Cushman & Wakefield’s U.S. Economic Forecast (January 2017), the outlook for the U.S. economy over the next few years remains positive. Although it will take time for policy to fully develop, the odds are high that President Trump, alongside a Republican controlled House and Senate, will deliver fiscal stimulus measures (tax cuts, spending increases, deregulation) that will infuse the U.S. economy―and property markets―with additional growth in 2017, and more so in 2018. That said, some of the expected growth in fiscal policy will be negated by tighter monetary policy, higher interest rates, higher inflation, and more global volatility. Given the anticipated fiscal policy position, on net, the U.S. economic expansion will be longer and stronger in the near-term than previously expected. U.S. real GDP will grow by an upwardly revised 2.3% in 2017, and register 3% in 2018. This will be enough growth to generate over 3 million net new jobs over the next two years, and will drive more demand for commercial real estate space than was previously assumed. Beyond 2018, the outlook becomes uncertain.
Source : Cushman & Wakefield