There is renewed confidence in the economy, higher levels of real discretionary income are anticipated, and stronger global growth is expected to support U.S. economic expansion. For the fourth quarter, job gains averaged 204,000 per month. For all of 2017, U.S. firms created nearly 2.1 million new jobs. In addition, tax reform should bolster the economy, translating into stronger CRE fundamentals and supporting market activity.
Read Cushman & Wakefield’s analysis of 2017 fourth quarter commercial real estate results for office, industrial, and shopping center sectors by clicking on the infographics below.
| THE GREAT TAX RACE: SPECIAL UPDATE |
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On December 22, 2017, the most significant overhaul of the U.S. tax code in more than 30 years was signed into law. Highlights from our updated The Great Tax Race report include:
- The largest impacts will be on the multifamily market due to reduced tax incentives for home ownership.
- Corporate tax rate reductions should make it more attractive for multinationals to expand U.S. operations.
- Profitable retailers will see the largest benefit from lower taxes, which will impact industrial (expansion) and retail space (selective upgrading).
- All REITs and many/most partnership investors should be eligible for 20% deduction on pass-through income, boosting after-tax returns.
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