Marcus & Millichap, in a new book, “How to Build a Real Estate Empire,” writes that forces of globalization and high consumption of the U.S. population should significantly increase demand for warehouse and distribution space through 2020.
Key areas for perimeter-related expansion of retail space include San Francisco, Texas, north of Dallas and Orange County, NY. Certain retail segments are seeing slow growth in Internet sales which may influence the market.
By 2006-2007, the hotel industry should be fully recovered from the early 2000s recession and terrorism backlash and provide attractive investment yields. By 2013, the FAA believes the three airports serving New York will require extra capacity.
By 2020, the Baby Boomer generation will shift into another phase of life, likely causing a change from a boom in single-family homes to an increase into some multi-housing, i.e. rentals or condominiums.
“As with any investment, planning for the long term is the key to success in real estate because cycles are built into the market,” says Millichap. “A careful and logical examination of changes in the economy and pending commercial needs provides an ideal platform from which one can mitigate risk and capitalize on the evolving market.”
Related Topics:
