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    The Cleveland Browns’ $5 million, four-month renovation project vastly improves its Training and Administrative Complex in Berea, Ohio. The renovations are designed by the nationally recognized, integrated architecture, engineering, and technology design firm Westlake Reed Leskosky of Cleveland, Ohio, and recently recognized with an AIA Ohio 2014 Honor Award. The new workplace is a thoroughly modern space, respectful of the history and tradition of the Cleveland Browns yet forging a progressive identity for the team, via bold imagery, messaging, team branding and colors. Photography by Kevin G. Reeves.

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    Designed by HOK, the new Prebys Cardiovascular Institute in La Jolla, Calif., is conceived to be the region’s largest and most advanced center dedicated to cardiovascular care. Interior spaces support advanced medical treatment, patient care, research, clinical trials and graduate medical education. The seven-story, 167-bed hospital includes 59 intensive care beds, four operating rooms, two hybrid operating rooms, three cardiac catheterization labs and an electrophysiology lab connected to centralized research labs, and a center for graduate education. Stephen Whalen Photography

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    The Wayne N. Aspinall Federal Building and U.S. Courthouse in Grand Junction, Colorado, received partial modernization and a high-performing green building renovation by the U. S. General Services Administration, Rocky Mountain Region. The Design-Build Partners were The Beck Group, as Design-Build Contractor and Architect-of-Record; and Westlake Reed Leskosky, was the Lead Design Architect, Integrated Engineer, Sustainable Design and Historic Preservation Consultant. Photography by Kevin G. Reeves.

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Corporate

The McMorrow Corporate Facilities Management Report presents news, information, feature articles, conferences, and products and services for commercial/corporate facility executives and administrators, property managers, and specifiers including architects, designers, and engineers charged with maintaining the workplace for optimal productivity, functionality, and retention of the workplace professional.

The McMorrow Corporate Facilities Management Report presents news, information, feature articles, conferences, and products and services for commercial/corporate facility executives and administrators, property managers, and specifiers including architects, designers, and engineers charged with maintaining the workplace for optimal productivity, functionality, and retention of the workplace professional.

Healthcare

The McMorrow Corporate Facilities Management Report presents news, information, feature articles, conferences, and products and services for commercial/corporate facility executives and administrators, property managers, and specifiers including architects, designers, and engineers charged with maintaining the workplace for optimal productivity, functionality, and retention of the workplace professional.

Government

The McMorrow Corporate Facilities Management Report presents news, information, feature articles, conferences, and products and services for commercial/corporate facility executives and administrators, property managers, and specifiers including architects, designers, and engineers charged with maintaining the workplace for optimal productivity, functionality, and retention of the workplace professional.

Sustainable

The McMorrow Corporate Facilities Management Report presents news, information, feature articles, conferences, and products and services for commercial/corporate facility executives and administrators, property managers, and specifiers including architects, designers, and engineers charged with maintaining the workplace for optimal productivity, functionality, and retention of the workplace professional.

Cushman & Wakefield U.S. Macro Forecast: Stronger & bumpier

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Global commercial real estate services firm Cushman & Wakefield released its latest U.S. Macro Forecast, anticipating that, following a turbulent year in 2016, the U.S. economy and property markets are positioned to perform well in 2017.

“Even before the election, the U.S. economic fundamentals were showing signs of heating up,”  said Kevin Thorpe, Cushman & Wakefield’s Global Chief Economist. “We observed a big GDP number in Q3, accelerating wage growth, surging consumer confidence – a string of really robust trends were already forming.  Now when you layer in the expected tax cuts and spending multipliers from the New Administration, it creates an even stronger economic backdrop for the property markets heading into 2017.”

Although it will take time for policy to form, Cushman & Wakefield expects that President-elect Donald Trump, alongside a Republican-controlled House and Senate, will deliver fiscal stimulus measures that will further boost the U.S. economy and property markets. That said, Thorpe notes that some of the expected growth in fiscal policy will be negated by tighter monetary policy, higher interest rates, higher inflation and more global volatility.

On net, Cushman & Wakefield forecasts the U.S. real GDP will grow by an upwardly revised 2.3 percent in 2017, and will hit 3.0 percent in 2018. “This will be enough growth to generate over 3 million net new jobs over the next two years and an increasingly robust environment for consumers,” said Rebecca Rockey, Cushman & Wakefield Head of Americas Forecasting. “This will drive more demand for real estate space than was previously assumed.”

The Cushman & Wakefield Forecast predicts the following implications for the commercial real estate sector:

  • Office: With 730,000 net new office-using jobs expected by the end of 2016 and an additional 438,000 and 508,000 throughout 2017 and 2018, respectively, there is still runway for the office market. In 2016, total U.S. net absorption is forecast to end the year at 50.2 million square feet. Absorption is projected to increase to 54.9 million square feet in 2017. Vacancy will remain stable through 2017 and will begin rising in 2018.
  • Industrial: The upbeat near-term outlook for consumer spending will ultimately trickle into robust demand for warehouse and distribution space, especially as eCommerce sales as a share of total retail sales continues to rise. Additionally, with year-over-year growth in manufacturing production set to rebound to positive territory, and with auto sales expected to remain in the 17-18 million units per year range for the next two years, the outlook for the overall industrial sector remains bright.
  • Retail: Although growth in consumer spending will remain strong, a larger share of that spending is going to eCommerce. Several major retail categories will be in contraction mode, while other sectors that have been in growth mode will face issues of market saturation that will slow expansion. Neighborhood/community and power centers will be least impacted by contraction, while mall and lifestyle centers – especially Class B and C properties in secondary or tertiary markets – will be disproportionately affected.
  • Transaction Volume:  Cushman & Wakefield expects investment sales to decline year-over-year in 2016 by 15 percent, to $466.0 billion. This is still well above the average of $279.7 billion over the 15 years for which there is consistent transaction data. While investment sales volume is forecast to modestly decline over the next two years (-2.2 percent in 2017 and -8.0 percent in 2018), the firm still anticipates solid activity with yearly totals registering $455.7 billion and $422.0 billion, respectively.

By and large, the outlook for the U.S. economy over the next few years remains positive. “Although headwinds have come and gone and come again, the major force driving growth – the consumer – is still gaining momentum,” Thorpe concluded. “Of course, we are ushering in a new era of fiscal and monetary policy, and that will continue to generate uncertainty. However, we believe there will be a net positive impact on economic growth as well as the property markets in 2017 and 2018.”

Download the full U.S. Macro Forecast here.