Press Release: By NAI
Global
Sam Zell and Peter Linneman Address 550+ Industry Leaders
New
York, NY – June 19, 2015 –The
outlook for the commercial real estate market appears stronger in the US than
the rest of the world. That was the shared consensus between Sam Zell,
Chairman of Equity Group International and Dr. Peter Linneman, NAI Global
Chief Economist. The two renowned real estate experts were featured on a
panel discussion in Chicago this week at the annual NAI Global Market Outlook.
Over 550 individuals from NAI Global Member firms and their clients attended
the event.
“Sam
Zell is a legendary industry visionary, and we are honored that he was able
to participate in our Global Market Outlook,” said Jay Olshonsky, President
of NAI Global, who moderated the discussion. “We are proud to offer our
Members and their clients access to this level of industry insight.”
The
presentation looked at factors driving the commercial real estate market,
including significant availability of capital, geopolitical unease, interest
rates, demographic changes and overall demand for space. Linneman anticipates
three to four more years of growth. He noted that debt capital is
flowing, and demand for space is up with supply picking up but still lagging.
Zell’s outlook was less optimistic, although he did acknowledge the state of
the market is better than it was earlier in the economic recovery. Zell
stated that he doesn’t “remember a period when there were so many black
swans,” citing geopolitical events in the Middle East and Ukraine that could
affect the global economy.
Technology
has been the biggest driver of growth in the office sector. “Technology
businesses are thriving on the availability of capital,” said Zell. Both
Linneman and Zell wonder if a decreased demand for space in the technology
sector would tip the US real estate markets. Zell pointed to other aspects of
technology that could have on the commercial real estate market overall,
including increased applications of Artificial Intelligence, which he said
“is moving not slowly but exponentially” and that the impact is yet
undetermined.
International
investing in the US commercial real estate market is happening but Zell
believes it is dramatically less than recent headlines would suggest, and
that the market is not being driven by foreign capital. He said that it is
playing a role in the US, but it has done that since the country was founded.
He said the US needs to go back to a focus on growth and for years the
country had a perpetual growth rate.
About NAI Global
NAI
Global is the single largest, most powerful global network of owner-operated
commercial real estate brokerage firms. NAI Global provides a full range of
corporate real estate services, including brokerage and leasing, property and
facilities management, real estate investment and capital market services,
due diligence, global supply chain and logistics consulting and related
advisory services. NAI Global Member firms, leaders in their local markets,
are actively managed to work in unison and provide clients with exceptional
solutions to their commercial real estate needs. Founded in 1978, today NAI
Global has more than 375 offices strategically located throughout North America,
Latin America, Europe and Asia Pacific, with over 6,700 local market
professionals, managing over 380 million square feet of property.
Global Real Estate
Contributor,
Frederick Oyugi, SRS, CBR, SFR, is a Licensed Realtor in New York City,
serving clients in the sale, lease and purchase of residential and commercial
real estate. With recognized
designations to serve Sellers and Buyers, he is a committed and dedicated
professional. As a founding member of the New York International Real Estate
Alliance, he engages his interest in the international aspects of Real
Estate. Listings Portfolio
|
Saturday, July 4, 2015
U.S. Commerical Real Estate Sector Outlook: Strongest Globally
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