Holiday Forecast for 2005
Anchors Away! How to thrive in 2005.
Next year, GDP is expected to increase by 3.5%. But your boat will speed at a faster or slower clip depending upon the region or real estate sector in which you navigate.
To avoid capsizing, the trick will be to vary your speed and steer toward the shore where you are most likely to have a successful docking. GG+A recommends the following navigational tips for 2005:
Residential (both single family and multi-family)
- Full speed ahead -- 2005 will see the market for residential stabilize for most regions due to anticipated steady improvements in employment and relatively low interest rates. Many locations can expect to see a downturn in 2006-2007 due to overbuilding.
- Developers will find calmer waters in areas outside major metros that attract migrants from gateway regions seeking economic and quality of life opportunities.
- Steer carefully! The current office overhang will lessen by the end of 2005, but at best, many markets will only stabilize.
Careful navigation will be required for three differing courses:
- Full speed ahead for high end, luxury retailing.
- Moderate speed for lower end, big box retailing.
- Avoid the shoals for middle range department anchored centers.
- Steer your boat to cities which attract European and Asian tourists. Business travel will modestly improve, but for most locations, visitation is not likely to pick up steam until 2006. For buyers, as opposed to captains, 2005 may prove a good time to purchase.
R&D and Industrial
- Navigation will be tricky for R&D, and in many regions it will be hard to stay afloat. For industrial users, select below average cost of living destinations that offer good air and highway access.
- Competition will be heavy from other skippers looking for space at air and ship hubs where congestion is still at acceptable levels.
The San Francisco & Midwest offices of GG+A wish you & your family safe harbor in 2005.