Accelerating Economy may be Derailed by Uncertainty in China and Emerging Markets

Transwestern Releases February Edition of "the BRIEFING"

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Feb 17, 2014, 08:00 ET

HOUSTON, Feb. 17, 2014 /PRNewswire/ -- The economy appears to be entering the new year on a roll. However, just as signs appear to be pointing to an accelerating economy, clouds in China and emerging markets are creating uncertainty and threatening to derail growth in both the U.S. and abroad, according to the February edition of "the BRIEFING" report compiled by Transwestern.

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The accelerating economy may be derailed by uncertainty in China and emerging markets, according to the February edition of "the BRIEFING" report compiled by Transwestern. (PRNewsFoto/Transwestern) (PRNewsFoto/TRANSWESTERN)

This year is expected to be better for the Euro Zone, with Deutsche Bank projecting 1 percent growth compared to 0.4 percent contraction in 2013. The European Central Bank rate cut in November should continue to provide stimulus.

There was surprisingly little reaction to the Federal Reserve's decision to cut its monthly bond-buying program from $85 billion to $75 billion. This "tapering-lite" program combined with the projected economic growth is expected to create upward pressure on interest rates. Therefore, 2014 is going to be a bumpy road for stocks and bonds, particularly Treasuries and high-grade corporate bonds.

Meanwhile, economic growth should enhance commercial real estate fundamentals, improving cash flow and returns. On a relative basis, commercial real estate should remain very attractive to both debt and equity investors. Despite a rise in interest rates on 10-year Treasuries by nearly 100 basis points, commercial real estate sales ended the year with increased volumes and flat or lower capitalization rates.

More information can be found in Transwestern's February issue of "the BRIEFING," a monthly publication analyzing the national economy, capital markets and commercial real estate. Download the full report here: http://www.transwestern.net/public/corporate/Briefing/TheBriefing_0214.pdf

"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.

ABOUT TRANSWESTERN

Transwestern is a privately held real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, 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. As a member of the Transwestern family of companies, the firm capitalizes on market insights and operational expertise of independent affiliates specializing in development, real estate investment management and research. 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 transwestern.com and follow us on Twitter: @Transwestern.

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SOURCE Transwestern