HOUSTON, Dec. 17, 2013 /PRNewswire/ -- Neither downgrades, cliffs, tapering defaults or political theater have been able to stop the slow and steady growth of the U.S. economy. Despite this ongoing uncertainty, it's business as usual for Wall Street and Main Street, according to the December edition of "the BRIEFING" report compiled by Transwestern.
A more favorable global economic outlook is also coming into focus as the Eurozone shows its first improvement in unemployment and Japan's outlook is on the rise. This, paired with a U.S. consumer who is now armed with lower debt levels and rising income, stock and home prices, should provide the foundation for continued growth in 2014.
The capital markets have completely recovered from the mid-summer panic over tapering. Wall Street continues as normal, despite concerns over when the Fed might withdraw some of its $85 billion per month bond-buying stimulus. Banks have eased business loan standards according to the Federal Reserve Senior Loan Officer Survey on Bank Lending Practices.
Meanwhile, interest rates have risen approximately 100 bps since May, and the immediate impact of tapering created significant uncertainty and chilled both the debt and equity markets for commercial real estate. That impact was short-lived as both commercial real estate debt and equity markets have rebounded nicely in terms of volume. The impact of rising rates on cap rates so far has been minimal.
More information can be found in Transwestern's December issue of "the BRIEFING," a monthly publication analyzing the national economy, capital markets and commercial real estate. Download the full report here.
"The BRIEFING" is an aggregation by Tom McNearney, Transwestern chief investment officer, of other articles and reports. McNearney leads Transwestern's capital market efforts for development and investment nationwide. McNearney also serves on the firm's investment committee and board of directors, and he directs the execution and expansion of the firm's principal investment activities across the country.
Transwestern is a privately held real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, development, research and sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. Transwestern facilitates better decision-making for clients by combining penetrating local market intelligence and macro-market research through its affiliate, Delta Associates. Transwestern has 34 U.S. offices and assists clients through more than 181 offices in 40 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate. For more information, please visit www.transwestern.net and follow us on Twitter: @Transwestern.