Economist Says “Economic Drivers All Firing”
The former director of research and strategy at Deutsche Asset & Wealth Management, and now a chief economist at one of the countries largest real estate firms, Andrew Nelson made his predictions for what the economy, and more specifically the real estate market, can expect in 2015. At risk of calling what we are currently experiencing a “Goldilocks economy”, Nelson did say that “virtually all of the economic drivers —jobs, wealth, housing starts—are firing in the right direction” which is enhancing his vision of seeing 2015 as being “a very good year for the property sector”.
Nelson also went on to describe a trend that most players in the office market have been echoing for a while now, which is that in their market “the supply response has been relatively muted compared to typical recovery periods”. Nelson elaborates, “all this additional tenant demand is translating directly into rising occupancies and rents for existing buildings”. This he sees as being a trend that is likely to continue through 2015, with property markets continuing to rise and new construction, especially in the commercial sector, continuing to stay relatively flat.
To read the entire interview with Andrew Nelson, click here.