Several Carson Design employees attended the recent Cushman Wakefield State of the Real Estate event — held online for the first time — to hear several market experts share their thoughts on the present and future outlook on local and national sectors.
Here were a few key findings:
- According to Kevin Thorpe, Cushman & Wakefield’s Global Chief Economist, we’re presently living in what he calls a “Goldilocks Economy” — not too hot, not too cold — at least for the remainder of the year. At some point thereafter, the downturn will inevitably arrive.
- Indianapolis, they believe, will remain a “steady Eddie” in the next recession as it has in the past. The city never seems to fall as fast and tends to recover more quickly than the national average.
- Economy: Recovers 1.5 years sooner
- Office: 4 years sooner
- Industrial: Positive in past 3 recessions
- Retail: 1 year sooner
- Current Capitalization Rates in Indy Office stand at 7.3%, with an increase expected next year
- Two key factors affecting the Indiana real estate market, other than the economy, include labor shortages impacted by immigration reform and greater investments in technology. Presently, Indiana ranks at an all-time low for unemployment. However, the state does not appear to have enough, or be attracting enough, people to fill vacant positions, which limits our growth potential and reduces expansion opportunities.