Grubb & Ellis: 2007 Forecast
The Grubb & Ellis Company is projecting that the commercial real estate leasing markets should continue to improve in 2007, as reported in their 2007 Global Real Estate Forecast released on Tuesday.
Investors are expected to direct their attention to the office real estate market as business capital spending and an expanding global economy will require a demand for more office space. The office real estate markets in Washington DC, Los Angeles and Las Vegas are all expected to do very well in 2007 for investors.
In terms of industrial space, Las Vegas may find itself in the same category as Phoenix in terms of growth being challenged by constraints on supplies of developable industrial land. However the retail real estate market is expected to do well in Las Vegas as an increasing number of retailers flock to the city’s growing population base.
Strong population growth, a high percentage of the population in the age groups most likely to rent apartments, robust job creation and high housing costs will also drive the multi-unit housing market in Las Vegas. The city is among Grubb & Ellis’ top 10 apartment markets.