The economy will be vibrant and the real estate investment environment steady through 2000, predicted Hugh F. Kelly, chief economist at Landauer Realty Group, the research arm of Grubb & Ellis Co., New York. He noted substantial population growth among 55- to 64-year-olds will create opportunities for retailing, resorts and recreational development, which in turn will require entertainment and recreational ventures with commercial facilities to support them.
The dynamics of the property markets don't suggest any immediate threat of sudden volatility in the real estate industry, according to the group's analysis. Rather, the key will be basing projections for space needs on the levels of demand, and not on expectations of continued growth. He also forecast that revitalized downtowns will be a major trend in the first decade of the next century, spurring increased institutional interest in the office sector.