Last week was the CREW Miami’s 19th Economic Forecast by NYU economist Hugh Kelley. I have written frequently about Hugh and his predictions. I always find his presentation insightful and this year was right on the mark. This year he spoke about the five basic forms of economic change and how they would impact Miami in 2016. Here are my key takeaways:
• Across the United States, commercial real estate is still in a favorable position of the cycle. Nationally, it is at Position 5 of a 16 position cycle, which means that it is solidly in the Expansion cycle.
• However, Miami has already had two segments boom — hotels and multi-family. Overall he thought Miami was at an 11, so he believes it is time for Miami investors to begin thinking defensively and not looking for future upside.
• Fortunately for Miami, we are now considered a 24-hour city and 24-hour cities outperform 18-hour and 9-5 cities in both office building investment returns and multi-family investment returns. This is important to note as we move to the peak of the cycle.
For more about the event, click here for a great article by Real Deal. This morning I am at the CCIM Real Estate Outlook which is a half day seminar on commercial real estate. It will be interesting to see what they have to say.
Remember, as things begin to shift, you may need expert guidance to determine how your office space will either work for you or against you. Call me so I can help you plan for the future.