Last week we made a few real estate and related predictions about 2017. This week we will take a crack at a few more. So without further ado…
New Construction of Rental Units
With the vacancy rate dropping again last year to a minuscule 2.9%, conditions are ripe for new construction of multi-family units. Very little has been built in our area since the 70s. Combine that with some incentives being offered, like no development fees in the downtown core area, and investment is sure to show up.
The Residential Vacancy Rate Flattens Out
After topping out north of 15% back in the recession of 2008-09, the local vacancy rate has continued to plummet in the last 7-8 years all the way to 2.9% in 2016. As the law of small numbers would dictate, additional improvement will be small from here. Combine that with an increased number of sales of condos and homes to investors and new construction coming online, the supply of rental units should increase to flatten excess demand.
New Construction Of Industrial Space
The vacancy rate for quality industrial space has really plummeted to near zero levels locally. Suppliers are worried that they don’t have the floor space to produce enough to meet contracts. The market might finally be ripe for a wave of new buildings being built. Increases in rent prices are almost at the point to justify new construction costs for landlords.
Office Shows Modest Improvement But Still Too Much Supply
With the local economy being much improved, demand for office space is getting better everyday. Having said that, there is still too much supply in the market. We expect to sop up some of that inventory, but not materially so.
Windsor-Essex Real Estate Market Continues to Get Positive Media Exposure
Last year was the first year where local and national media really started to notice the renaissance going on in our local real estate market. General inquires for real estate are rolling in everyday. With continued migration, immigration and a buoyant local economy, things look rosy for 2017 and therefore we should see continued positive media.
There are some more predictions for 2017. Hopefully we get some of them right! Do you agree or disagree with any of them?
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