According to the analysis by Bill Millichap, globalization and high consumption of the U.S. population should significantly increase demand for warehouse and distribution space through 2020. In addition, certain retail segments, which are seeing slow growth of Internet sales, might influence the market. Key areas for perimeter-related expansion of retail space include San Francisco, Texas, north of Dallas, and Orange County, New York, located in the Hudson Valley.
By 2006-2007, the hotel industry should be fully recovered from the early recession and terrorism backlash of the early part of this decade and should provide attractive investment yields. What’s more, the FAA forecasts that by 2013 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, including rentals and condominiums.
In the South, the sunbelt markets – from south Florida to southern California – will likely be the fastest growing markets for new office construction.
