Tress Realty Group
  • Home
  • Investors
  • Homeowners
    • Selling >
      • Sale Prices
    • Buying >
      • Land
      • New Jersey 55+
  • News
  • About
  • Contact
  • Send Out Cards

NAIOP sees moderate economic growth, energy innovations for Commercial Real Estate industry

2/15/2017

0 Comments

 
Picture

The Trump administration’s impact on the economy and how emerging tech innovations can transform commercial real estate were some of the issues addressed at NAIOP New Jersey’s Annual Meeting and Commercial Real Estate Outlook, held at the Short Hills Hilton.

Nearly 300 industry professionals attended the first major CRE networking event of the year, which included the election of the commercial real estate development association’s 2017 officers and trustees.

Dave Gibbons of Elberon Development Group, who assumed the role of chapter president from The Rockefeller Group’s Clark Machemer, said, “We have a big year ahead, with the governorship and all 120 seats in the state legislature up for election in November. With over 740 members, NAIOP NJ is one of the largest chapters in the country, and we will continue to use our voice to advocate for policies that support the health of the commercial real estate market.”
​
Andrew Nelson, chief economist for Colliers International, presented an overview of how economic, industry, demographic and political trends are likely to impact New Jersey’s commercial real estate market.

“In 2016, the U.S. economy saw moderate growth that was strong enough to fill our space and encourage investor demand for our products,” said Nelson. “It was not so strong as to overheat markets and encourage a lot of speculative construction that would ultimately undermine the recovery.”

While this growth expected to continue for another year or two, there are indications that the economy is nearing the end of its current expansion. “This cycle has lasted over seven years and is one of the longest in U.S. history,” said Nelson. “But the longer you are growing, the greater the likelihood that something will dislodge.”

The uncertainty surrounding the outcome of the presidential election could mean the economy and the industry will face some choppy waters. However, Nelson says there are signs of optimism.

“President Trump is inheriting a solid economy that has essentially healed from the great recession. We are no longer in recovery, we are in expansion. Home prices are up, jobs are back and consumer debt levels are down.” He noted that all areas of the country have not shared evenly in the recovery. Wage growth has been flat until recently and the strong dollar has held down manufacturing and imports.

Nelson believes the expansion could be lengthened by several of the new administration’s proposals, which have the potential to spur economic and job growth in the next few years. He cited President Trump’s proposed stimulus package of tax cuts and infrastructure spending, and efforts to create a more business-friendly tax and regulatory environment as examples.

In New Jersey, this could benefit the pharmaceutical and financial services sectors, the latter of which has experienced a lag in job growth in recent years. The stimulus would also be good news for most property sectors, especially the office market, as the financial sector typically leases more office space than any other.

New Jersey’s industrial sector is outperforming the U.S., benefitting from the growth in ecommerce at the expense of traditional retail.

Nelson noted that it remains to be seen how proposed trade policy changes and tax cuts will impact retailers, particularly those that rely heavily on imports. And while the multifamily market continues to enjoy below-average vacancy rates, investors should anticipate higher interest rates as a result of reduced financial regulations.

Jeremy Snyder, director, United States-East for Tesla discussed innovations related to energy supply and energy demand. In his remarks on Tesla’s solar technology and renewable energy storage innovations, Snyder cited examples of how each offers opportunities for commercial real estate developers.

With its 2016 acquisition of solar-energy company SolarCity, Tesla is producing solar tiles that will be available commercially later this year.
​
“The cost of a solar tile roof is similar to a traditional roof, and you’re offsetting your energy costs by installing a functional roof,” he noted. The company’s Powerpack and Powerwall 2, battery systems that integrate with solar to provide energy for home and commercial use, offer unlimited scalability for any size project.

Source: rew-online.com
0 Comments



Leave a Reply.


    Picture

    Tress Realty

    Tress Realty Group compiles some of the best real estate news, tips, and information for buyers, sellers and investors.

    Get started with your home search at www.TressHomes.com.

    Archives

    April 2020
    January 2019
    October 2018
    July 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    June 2013

    Categories

    All
    Chatham
    East-brunswick
    Fair Haven
    Glen Ridge
    Hoboken
    Home Sales
    Maplewood
    Millburn
    Montclair
    Ridgewood
    South Orange
    Summit
    Tress Homes

    RSS Feed

Home

Website disclaimer and copyright

​
Use of the information and data contained within this site or these pages is at your sole risk. If you rely on the information on this site you are responsible for ensuring by independent verification its accuracy, currency or completeness.  It is provided “as is” without express or implied warranty. 

Some properties which appear on this web-site may no longer be available because they are under contract, have been sold or are no longer being offered for sale.  Images uses for navigation may be for properties in different towns, and are not intended to be considered anything other than representative of the types of houses that may be found in a particular municipality.  All data and/or search facilities on this site are for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties that consumers may be interested in purchasing.

Tress Realty Group cannot guarantee the accuracy of the IDX/MLS data created by outside parties. Tress Realty Group further assumes no responsibility for any misleading content or incorrectly listed information due to such negligence. All ancillary information presented on this web-site is not guaranteed and should be independently verified by the users of this site. Tress Realty Group makes no warranty, either expressed or implied, as to the accuracy of the data contained within or obtained from this web-site.

Tress Realty Group accepts no liability for any interference with or damage to a user’s computer, software or data occurring in connection with or relating to this Site or its use or any website linked to this site.  Further, Tress Realty Group has provided Hypertext links to a number of sites as a service only. This should NOT be taken as implying any link between us and those various organizations or individuals.

Disclaimer: this website may be supported by ads and participation in affiliate programs. We may earn a commission when you click our links. The information included in this post is for informational purposes only and should not be taken as legal or financial advice.

Site copyrighted by Tress Realty Group LLC  © 2016-2022, all rights reserved.
  • Home
  • Investors
  • Homeowners
    • Selling >
      • Sale Prices
    • Buying >
      • Land
      • New Jersey 55+
  • News
  • About
  • Contact
  • Send Out Cards