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Colliers International chief economist Andrew Nelson says commercial real estate trends in 2016 have been a disappointment, with overall expansion since the recession being only two-thirds as robust as in previous recoveries. Nelson and Colliers International managing partner Andy LaDow looked to the future and told the San Diego Union-Tribune what they expect for CRE next year.
Office: Expect to see companies, especially those employing lots of Millennials, moving into urban centers. Downtown neighborhoods are doing very well while sterile office districts are lagging.
Retail: While e-commerce will keep impacting the retail landscape, Nelson is confident more purchases will continue to be made in stores. He expects shopping centers that are “dynamic and interesting” to remain successful.
Industrial: Nelson says the sector is growing as the shift to off-site retail inventory storage continues, noting institutional investors are very active in the space.
Multifamily: Millennials who are either financially unable or simply uninterested in buying their first home will keep the apartment boom booming, Nelson says. [SDUT]
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