Healthy Economy Requires Updated Real Estate StrategyMay 17, 2016
Cushman & Wakefield published the U.S. Macro Forecast this month with promising news. Many key factors in the overall health of our economy are pointing to U.S. GDP growth accelerating. Among them are low oil prices, rising wages and job security, all boosting consumer confidence. For commercial real estate, net absorption will begin to slow as office-using employment grows at a decelerating rate. Overall vacancies should continue to decline and as the conditions tighten rent growth will continue. While some feared the tech sector may be declining, economic data show that instead it will continue growing as well, accounting for 11.4% of new jobs in 2016. Core inflation is firming within the U.S. and as a result C&W assumes that the Fed will announce its next 25 bps increase in June. For the entire article, please click: CW_National_Forecast_Report_May 2016.
As an intelligent tenant, I always recommend you meet with a broker at least 12-14 months prior to your lease expiration. In today’s climate you can expect to find fewer options available to you, rents that are higher than what you are currently paying and longer term requirements from landlords, 3-5 years at a minimum.
In order to avoid complete sticker shock, get out your lease and give me a call. We can go over your current business plan, make sure that you are in the best type of property for your business goals and review the real estate market together. Waiting until the last minute adds pressure to the equation and gives landlords the upper hand so take a few minutes and let’s update your real estate strategy together.