NAIOP NJ Outlook: Moderate Growth Will Help CRE Industry Avoid Overbuilding

Andrew Nelson, chief economist for Colliers International, speaking at the NAIOP NJ Real Estate Outlook meeting in Short Hills, NJ. (Steve Lubetkin Photo/StateBroadcastNews.com. Used by permission)

SHORT HILLS, NJ—The economy is growing at a rate just strong enough to keep investors interested in commercial real estate, but the industry should be able to avoid speculative overbuilding, says Andrew Nelson, chief economist for Colliers International, who spoke recently at NAIOP New Jersey’s Annual Meeting and Commercial Real Estate Outlook.

“In 2016, the US economy saw moderate growth that was strong enough to fill our space and encourage investor demand for our products,” says Nelson. “It was not so strong as to overheat markets and encourage a lot of speculative construction that would ultimately undermine the recovery.”