As predicted, Q1 2016 mirrored Q1 2015. The first quarters of both 2015 & 2016 showed significant volatility in the public investment markets, as the key drivers of 2015’s volatility continue to remain just as relevant today. Thus, public investment markets struggled with a global economy of slow growth & low returns. This combination of market volatility & a weak global economy led pundits to use the “R” word (recession), encouraging an inclination towards risk reduction. Despite these headwinds, however, the U.S. economy continues to inch forward. Leading indicators suggest that our GDP for the remainder of 2016 will grow at approximately 2+%. A recent CBRE Americas Investor Intentions Survey revealed two principal themes: investors expect to remain very active this year in both acquisitions & dispositions, & they are becoming more conservative in strategy & risk appetite. South Florida, & in particular Palm Beach, sustains positive influence from the following key trends:
