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Holiday Forecast for 2007
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2007 will be a transitional year with a significant difference in what’s hot and what’s not.

The economy will not soar in 2007, but it will continue to show positive growth. Interest rates will rise moderately, and the capitalization rates for most real estate products will begin to decompress from the lows of 2006.

The primary forces of economic growth will shift from consumer spending to business expansion. This change in the source of economic energy will make a significant difference in What’s Hot and What’s Not in 2007:

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  • Multi-Family Rentals
  • Office
  • Industrial

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  • Single-Family Housing
  • Hotels

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  • Condos
  • Retail

Unlike the children of Lake Wobegon, not all investments will be above average next year. But the shift in capital flows from real estate to equity markets and the overreaction to the slowdown of residential sales in some regions will create good buying opportunities for future adaptive re-uses and new development.

All of us at Gruen Gruen + Associates wish you many soft and happy landings in 2007.

image of 2007's annual holiday card

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