1/25/24

Mike Goman, principal at Goman+York, reecntly shared his thoughts on the market and 2024 CRE forecast. Presented remotely by CCIM Connecticut Chapter.

Our take-aways from the presentation:

• Good time to sell quality “A” assets; bad time to own in B/C markets
• Redevelopment opportunities abound, but must acquire at low $/sf
• Over $500B in capital seeking opportunities to invest
• Municipalities must revise permitting process, costs, and timelines – bring simplicity & certainty to developers
• Out of state (to Connecticut) investors:
  • Shifting interest level from Fairfield County north to Hartford
  • Less competition/cheaper prices than home states
• Demand for 10,000+ additional residential apartments in Connecticut
• Conversion projects continue momentum
  • Office-to-residential/self storage/hotel
  • Hotel-to-residential apartments
• Quick Service Restaurants (QSR) – new concepts & expansion mode
• Self storage design changing to high-end exterior finishes, multi-story
• Build-for-rent single family homes, especially in southeast US markets
  • 83M millenials outgrowing apartment living