Making matters more complicated, find the real estate experts from the USC Lusk Center for Real Estate, is the possibility that more opportunities for real estate development and investment will be found outside traditional commercial markets. Stuart Gabriel, Ph.D. director of the Lusk Centercolor>, explains "historical trends are not necessarily a reliable predictor of future demand for real estate." He points out that developers and investors will have to stay abreast of changing conditions and emerging trends in an increasingly complex real estate market. White collar employment, for example, was traditionally used to forecast demand for office space. But now, thanks to developments like telecommuting and outsourcing, and pressures on companies to make the most out of every square foot, that outlook can be complicated. Gabriel advises developers and investors to take a closer look at comprehensive and detailed demographic, economic, and property market research. From that, it may be possible to see how "mega-trends" like the influx in the nation's Latino population and baby boomers nearing retirement age will affect local markets.
May 1, 2005