Berkeley’s Rosen Says “Bay Area CRE Market Remains Rosy Despite Rocky Start”
Orig Post news.theregistrysf.com | Re-Post MNM Partners LLC. 2/25/2016
Though 2016 got off to a rocky start economically in the U.S. thanks to the meltdown in China, financial markets are quite optimistic about the rest of the year, especially economic growth in the San Francisco Bay Area, according to economist Ken Rosen.
Rosen, chairman of Berkeley-based Rosen Consulting Group and also chairman of the Fisher Center for Real Estate and Urban Economics at UC Berkeley’s Haas School of Business, called San Francisco and Silicon Valley “the fastest growing region worldwide, basically the center of the universe” of the tech world, in a market forecast presentation on Jan. 21 at Electronic Arts’ corporate headquarters in Redwood City, hosted by the corporate real estate trade group CoreNet.
Rosen’s 2016 macroeconomic positives include increasing job growth, less unemployment and strong sales of vehicles and homes. Negative indicators include the financial problems in China, excess liquidity, chaos in the Middle East and volatility in capital markets. Overall, Rosen said there is a 60 percent chance that the U.S. will see moderate to “choppy” growth, a 35 percent chance that contraction will occur and a 5 percent chance that strong expansion will happen.