SAN JOSE, February 22, 2016
– Trends2017, Colliers International’s 18th annual commercial real estate forecast, provided an outlook on Silicon Valley’s commercial real estate market and a deep dive into the political and economic climate ahead. More than 700 Colliers clients and industry professionals attended the highly anticipated forecast at the historic California Theatre in downtown San Jose on Tuesday, February 7, 2017.
Colliers International reported a mild slowdown in 2016. "After the biggest year on record back in 2015, we sort of had nowhere to go in 2016 but down," said Jeff Fredericks
, executive managing director of Colliers’ Silicon Valley office, "and that’s the direction we went — but 2015 had spoiled us," Fredericks said. Colliers’ Market Report and Forecast book is released each year at the event and is one of the closely watched forecasts regarding the health of the commercial real estate market in the Bay Area. According to the report, commercial real estate markets in Silicon Valley and the Peninsula remain healthy with a reasonable expectation of favorable near-term performance. The office market is expected to have it best year ever with regards net absorption in 2017, largely due to the amount of preleased construction that is scheduled for completion during the year. R&D and Industrial markets will measure a mild slowdown in the coming year, while warehouse space will remain steady following a strong 2016.
Following the commercial market overview, guest presenters, Gregory Valliere, chief global strategist at Horizon Investments, and Christopher Thornberg, founding partner of Beacon Economics, LLC, also discussed nation’s current political and economic climate and what may be ahead both locally and globally. The discussion was moderated by Matthew Mahood, president & CEO of The Silicon Valley Organization.
Valliere raised concerns about political priorities in the white house, saying that with the deficit as a percentage of GDP on the upswing, coupled with aging demographics who will have to manage unknown territories regarding social security and medicare. Valliere also express concern about the administration’s fixation with Iran as potentially leading to unnecessary conflict.
Thornberg addressed his thoughts on where the real economy stands today and the hurdles it faces in the coming years. “The reality is that things ain’t that bad,” stated Thornberg. “For me the scariest thing of all is the increasing disconnect between economic realities and political conversation. I have never in my years seen Congress so unattached to the truth.” One of the many examples he used to outline this disconnect during the discussion, he cited the labor market. What was recently hyped on the Presidential campaign as a suffering labor market and President Trump’s vow to add 25 million jobs - and the reality - that the labor market is preforming at its best in more than a decade.
Fredericks added to his forecast of 2017 by saying, “There are cracks in the armor, but it is still a fundamentally strong commercial real estate market in Silicon Valley.” For more information about the event and to download a complete copy of the report, please visit the event website
About Colliers International Group Inc.
About Colliers International Group Inc.
(NASDAQ and TSX: CIGI) an industry leading global real estate services company with more than 16,000 skilled professionals operating in 67 countries
. With an enterprising culture and significant employee ownership, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include strategic advice and execution for property sales, leasing and finance; global corporate solutions; property, facility and project management; workplace solutions; appraisal, valuation and tax consulting; customized research; and thought leadership consulting. Colliers International has been ranked among the top 100 outsourcing firms by the International Association of Outsourcing Professionals’
Global Outsourcing 100 for 10 consecutive years, more than any other real estate services firm.