August 17, 2007
Last week brought several key economic indicators. Some were bullish such as second quarter GDP growth (3.4 percent annualized) and The Conference Board Consumer Confidence Index (112.6 in July, the highest reading since 9/11). Some fell short of expectations, including July employment (92,000 net new payroll jobs) and the ISM indexes. But these take a back seat to credit market problems triggered by a loss of confidence in subprime mortgages. For commercial real estate, this could bring tougher lending terms and modestly higher capitalization rates.
Robert Bach currently serves as senior vice president of research & client services at Grubb & Ellis Company in Chicago, Illinois and he can be contacted at (312) 698-6754. For more information about Grubb & Ellis Co., go to www.grubb-ellis.com.