Economy Watch: SIOR Reports Strong Outlook for Growth in 2018
- Jun 27, 2018
By D.C. Stribling
The First Quarter 2018 SIOR Commercial Real Estate Index rose to its highest value since its creation in 2005, according to the Society of Industrial and Office Realtors. With a value of 100 on the index indicating a balanced market, the national index closed the first quarter of 2018 at an all-time high of 134, reflecting a positive expectation for the remainder of 2018 among survey respondents.
The organization calculates the index based on the results of a U.S.-based member-wide survey. With gains in business investments, exports, as well as consumer and government spending, the SIOR CRE Index points to an essentially positive environment for economic growth. The addition of more than 230,000 new jobs in health-care and business services in particular means the market is poised for continued growth, the report noted.
The majority of SIOR members expect conditions to improve, with 64 percent of respondents foreseeing growth. Moreover, only 1 percent of SIOR members experienced losses in their markets from national economic conditions, while 3 percent felt that their local economy was faltering.
“The gains in every aspect are a great sign of what is to come this year,” said Del Markward, SIOR global president, in a statement. “With many SIORs feeling confident about their markets moving forward, and having the highest index in over 12 years, everyone is eager to see where we’ll be next quarter.”