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Friday, December 21, 2012

Real Estate Forecasts for 2013-2014

Photo courtesy of therealdeal.com

According to Cushman and Wakefield’s latest global office forecast 2013 will be a year of stabilization while 2014 is when rental growth is expected.

"Tenants are focused on achieving efficiencies, which in many instances has translated into occupying less space, and at the same time, we've seen an increasing flight to quality, resulting in pockets of growth in top-quality properties and global gateway cities." said Glenn Rufrano, President and Chief Executive Officer of Cushman & Wakefield.

That explains why San Francisco is one of the cities that Is forecasted to experience one of the highest office rental growth. Most of the US cities will see limited new construction projects in 2013 and major growth will happen in the major markets such as Boston, Washington DC, New York and of course San Francisco. Canada had a record development this year and specially Toronto where 3.5 million square feet in downtown are being built and will be available for 2013.  

“A late-2013 central market upturn will be driven by a number of factors, including sustained low interest rates, the anticipated U.S. economic recovery, a stabilized euro zone and a slow drop in value of the Canadian dollar, which will help revitalize manufacturing and export growth,” says Pierre Bergevin, President and CEO, C&W Canada

As the US economy continues showing signs of recovery, the real estate industry will continue to recover slowly starting by important cities as New York and smaller cities will follow in a butterfly effect.

The real estate industry will always be the leading push for the rest of the economy, thus Americans can expect a stable year and prepare for a prosperous 2014. 



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