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Avison Young Forecasts Opportunities Amidst Strong Demand, Repricing, Strategic Changes Ahead in 2019

Global real estate markets are thriving. Despite political headwinds such as trade disputes, Brexit, currency fluctuations and interest-rate hikes, quality real estate continues to be occupied and in demand. Fundamentals continue to show great strength amidst restrained building activity, strong demand and accordant rising rents. Those were a few of the key trends noted in Avison Young’s 2019 North America, Europe and Asia Commercial Real Estate Forecast (video).

Avison Young Mark Rose headshot

Rose

 Avison Young’s Mark E. Rose says, “While the last few weeks have certainly been a rollercoaster ride for the world’s equity markets, the headline is: we continue to feel very positive about opportunities in the real estate environment for the year ahead.” Rose notes, Avison Young believes more capital is available to move into real estate debt and equity than at any other time. “The next wave of investment is not a matter of if or when – it’s just a matter of price,” yet Rose points out, “Understanding demand is the key to navigating the current market.”

The report notes, an office experience is taking the place of the static workplace of prior generations. Energy, light, collaboration, purpose, sustainability, and health and wellness are as much drivers of the work experience as the underlying businesses.

Industrial is today’s property class of choice, and will probably regress to the mean, but will still be a driving force as methods of production and distribution continue to evolve. Distribution to the home and the last mile are top of mind among industrial owners and occupiers. Accordingly, same- day delivery is the goal of retailers and consumers, as the world’s population continues to increase.

Avison Young Earl Webb headshot

Webb

Avison Young’s Earl Webb says, “The U.S. market continued to provide fairly predictable returns to investors in 2018, despite some turbulence, both economically and geopolitically. The strong correlation between job growth and real estate value was again demonstrated in 2018, as the U.S. added more than two million jobs which, in turn, bolstered occupancy levels as well as consumer confidence. Vacancy rates across all property types remain low when compared with historically-similar market cycles. Capital flows into commercial property in 2018 remained roughly equivalent to those of the prior year, and foreign investors continued to be significant investors across all U.S. property types, especially office and industrial.”


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About Dennis Kaiser

Dennis Kaiser is Vice President of Content and Public Relations for Connect Commercial Real Estate. Dennis is a communications leader with more than 30 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect’s client content operations and is involved in a range of initiatives ranging from content strategy, message development, copywriting, media relations, social media and content marketing services. In his most recent corporate communications roles, he led a regional public relations effort across Southern California for CBRE, played a key marketing role on JLL’s national retail team, and was responsible for directing the global public relations effort at ValleyCrest, the nation’s largest commercial landscape services company. In addition to his vast commercial real estate experience, Dennis has worked on communications and launch strategies for a number of residential projects such as Disney’s Celebration in Florida, Ritter Ranch in Palmdale California (7,200 homes, 22,000 acres), WaterColor in Florida and PremierGarage in Phoenix. Dennis’s agency background included firms such as Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator. Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements. Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, BoyScouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and Thunderbirds Charities.

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