Realty outlook Q&A with Nicholas Morizio, president of Colliers International in Hartford.
Q: What’s your outlook for central CT’s real estate market for 2015?
A: The market is slowly getting better. More money is available to borrow so companies can buy and/or expand their businesses. Banks really want to lend to small businesses.
Q: Which segment of the commercial market do you see performing strongly next year and why?
A: Industrial/warehouse, retail and office space — all three, but not strongly. Industrial real estate is probably the strongest but there are very few small buildings for sale or lease in the market.
Vacancy rates for industrial, office and retail decreased in the third quarter of 2014, while rental rates increased slightly due to lack of construction.
Q: Which segment will be the weakest?
A: Older, Class C office space and older, multi-story, low- ceilinged industrial space.
Q: With interest rates expected to remain low through next year, how will that impact the flow of investor capital into this market?
A: It would have a good impact. It lets companies know that they can expand and where the rates would be.
I believe interest rates will remain low throughout 2015.
Q: What’s your biggest worry about the performance of the local realty market next year?
A major company moving out, which would affect many smaller companies that supply larger companies.
When Pratt & Whitney has a strong year, all companies that provide services to Pratt grow and expand.
