Four Trends Jonathan Schultz Is Watching In 2016
We're tired of Powerball jackpots dominating the news. That's why we're excited to take a breather with our 5th Annual New Jersey State of the Market event on Feb. 17, where Onyx Equities co-founder and managing director Jonathan Schultz will speak. He gave us a preview of four trends he's watching this year:
1) Debt Coming Due
With a new wave of maturities set to hit in 2016 and 2017, Onyx Equities is ready to take them on. “We’re interested to see if the markets recover enough that they won’t cause the same damage as they had in the last cycle,” he says.
2) Job Growth
Onyx now has a presence in 11 markets, opening new offices in Memphis, Atlanta, Maryland and Charlotte in 2015. While Jonathan has seen some job growth around the country, he asks, “Will the economy catch up with the availability of space, making it less of a commodity and more of a necessity? It will be interesting to see which businesses will expand this year.”
With Millennials and Baby Boomers leveling out in the workforce, tech will be a big story. All you have to do is watch the movie The Intern, Jonathan says (starring Robert De Niro, above, and Anne Hathaway). “You’ll be left behind if you don’t embrace the new technology,” he adds. “It has penetrated the consumer base and we’re at a point of no return.” Real estate is going to shift as a result. Technology needs to be intuitive and easy for Baby Boomers to use, he points out. “They shouldn’t have to fear the experience."
4) Oil Prices
We’re at a very interesting time with oil prices, which have dropped to $30 a barrel. This pricing is going to impact how sovereign wealth and hedge funds invest in the coming year, potentially putting investment on a slower pace. And it will affect tenant growth in industries reliant on oil prices, Jonathan says. “While there are great opportunities out there, Onyx is very cautious on how it’s going to execute deals—you need not only good real estate, good location and good prices, but tenant demand.”