A mini-boom in commercial real estate

Oregon economist Bill Conerly says we are currently under-building commercial real estate, which will lead to a mini-boom. The pipeline of new buildings is thin, so as the economy improves, there will be very little additional space coming to market. Occupancy rates and rents will rise. The resulting increases in operating earnings will cause the mini-boom. However, a true boom requires easy money, which is not part of our future, at least over the course of the upcoming cycle.