Avatar's Blog
» Real Estate and the Economic Forecast
The economy continues to show signs of robust growth and health. Employment indicators show more of us getting back to work. Profit and production indicators continue to increase at a steady and manageable rate. Even the Boeing Company is making headlines that read: Boeing Shrugs Off Strike and Posts Increased Earnings.
Where is real estate investment heading? For the commercial sector, look at properties that wil support retail, industrial, and manufacturing facilities. New and expanding businesses will need to rent space to accomodate increased workforces.
In the long term, if people begin using the computer and web-based technologies now available to track inventory and sales and project production requirements, requirements for long term storage facilities should be less and requirements for JIT delivery systems should increase. It used to take Sears Robuck and Company about 3-6 months to tell a manufacturer of a specific tool or color of paint how much sold and in which months, etc. Now, manufacturers can log in to see the daily sales of their products made by Sears - down to the color and day of the week that the product sold. Projecting short and long term needs is becoming much more precise. Consider the real estate ramifications when choosing your next investment property.
