The REIT's have scarped up most of the investment grade parks, and are now homing in on the larger parks of B and C grade to soak up the cash being made available for the product. This serves to drive up the valuations of formerly unattractive parks, and ever-restrictive zoning standards across the country combine to give this property type one of the highest potential returns available in real estate. Commercial growth and development remains strong. Online spending has in fact created a mini-boom in warehouse and distribution facilities. Commercial occupancies reported to the International Council of Shopping Centers are averaging in the nineties.
Retail spending remains strong.
Consumer credit, while higher in dollar amounts, is in fact the least we have seen in recent years as a percentage of income. The income and employment levels of the population as a whole are the strongest in history, which in turn drives spending, and are the key indicators for the near term economy. This is good news for rental property owners without being bad news for builders. Apartments have both permanent and bridge financing products available to fit almost any scenario. Debt coverage ratios on even marginal properties are in the 1.15-1.25 range, certainly not an indication of overly tight money.