An Overview of Kevin Maggiacomo’s Outlook for 2016
After a record year in commercial real estate we turned our attention to the start of 2016 with lofty goals and CRE visions swimming around in our head. After so much success in 2015 the bar is set high, and it has many investors worried if new year goals can reach. Across global markets investors seem to be uncertain about the future for commercial real estate. To one man though, this is not such bad news.
Kevin Maggiacomo, President and CEO of SVN, views this uncertainty as opportunity and he provides a very good argument to back this up. He recently published a blog post where he discusses the year ahead in the commercial real estate market and provides his perspective on where it’s headed. Using strong data from 2015, and incorporating many global factors, he provides details on the various world conditions he believes may, or may not, have a huge impact over the next year.
As we progress through the start of a new year, I am pleased to share my thoughts on the robust 12 months past and to offer my outlook for the commercial real estate market in 2016. Before I do, I would be remiss if I did not thank the SVN Advisors, staff, and fellow brokers for their contributions to driving our market forward in spite of changing times. I know that I speak for all SVN Advisors and staff when I wish you a prosperous year ahead.
The Year Ahead in the Commercial Real Estate Market
Uncertainty Breeding Opportunity
After several years of increasing domestic economic expansion and an ever-recovering and ever-growing real estate market, 2016 opens with the return of global economic uncertainty as China’s economic growth moderates, energy prices decline significantly, and geopolitical threats such as ISIS, pose a consistent threat to Europe and the rest of the world. While it remains unclear how today’s macroeconomic conditions will impact commercial real estate markets, there are two scenarios. The first is that global market weakness will impact domestic financial markets, the second is that market impacts remain moderate and commercial real estate remains stable and continues to grow due to strengths in core fundamentals. We believe that the second scenario is more probable given the unique opportunities being posed by forces – like demographic shifts – that are proceeding independently of macroeconomic trends.
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