June 5, 2015
There are things to worry about when considering the future of commercial real estate over the next few years, but there are several things that people concentrate on that they don’t need to stress over.
That was the message delivered by Chris Thornberg, a leading economist in the industry and founding partner of Beacon Economics during a keynote speech at Connect Los Angeles, the debut event of Connect Conferences.
So, what DO we need to be concerned about? His message was that competition from China, the educational choices made by officials and bad financial regulations are the biggest threats. Thornberg stressed that commercial real estate executives need to get more involved in the political process.
But the things that many are concentrated on that we SHOULDN’T worry about, include the strength of the dollar, student debt, the drought and interest rates.
And even though California can be a state that is not always commercial real estate friendly, he said it really hasn’t impacted the industry. Residential real estate has continued to make progress, and the Inland Empire, which suffered hard during the recession, is the third-fastest-growing economy in the United States.
Plus, there is a lot of capital out there that needs to be invested which could increase asset prices.
“You’re in a great state,” Thornberg said. “You’re going to make a great deal of money over the next couple of years.”