In the latest edition of our monthly news brief, JLL’s regional team curates the top industry articles to keep you in-the-know. In this month’s edition, JLL spotlights CRE trends to watch in 2016, millennial brain gain in the Great Lakes and Detroit’s bright economic future.
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CRE Trends to Watch in 2016
According to National Real Estate Investor (NREI), 2016 will be an opportunistic year for investors “who can step out in front of ongoing, and in some cases intensifying, economic demographic and technical trends.”
Growth in the U.S. looks stable, while underlying inflation should remain tame. Rates will likely stay consistent, which may apply pressure on other economies. But, according to NREI, this could make U.S. assets more appealing throughout the year.
In a quick wrap-up, here are three of the six key trends ahead projected by NREI:
- Global Urbanization: Both boomers and millennials are looking for better access to jobs and amenities, so they’ll continue moving closer to cities this year.
- Changes in Retail: 2016 will see retail continue to embrace the virtual and physical shift, as well as entertainment-themed spaces. Last year’s Thanksgiving holiday saw online purchases outpacing in-store shopping for the first time ever. According to NREI, “analysts suspect that the more successful retailers will be those who can optimize a combination of online and in-store shopping experiences.”
- Lower Energy Prices: The cost of oil has dramatically decreased and major oil producing countries haven’t reduced production. In 2016, this will have a significant economic impact across industries—including commercial real estate. Most notably, the reduction in oil costs will “boost industrial production and reduce distribution costs,” according to NREI.