2011 is the year when the Baby Boomers begin to turn 65 years old.  This trend will continue for the next twenty years.  How is the Real Estate industry going to respond to this demographic reality ?  The impact on society is enormous: housing, transportation and work force issues abound.  

  • Will housing prices be suppressed as Boomers downsize their homes to match their new lifestyles and incomes ?
  • What will the impact be on government delivered social services ?
  • Will consumer spending decrease as Boomer incomes are reduced ?
  • Will medical and health industries have the resources to respond to the flood of new patients showing up in their waiting rooms ?
  • Will skilled workers stay on the job longer ?
  • Are there enough skilled workers to replace those that are retiring ?

Which of the industries real estate professionals work with will expand and which will contract ?  It seems reasonable to assume that the health care industry will expand, but how will this change impact retail, housing and transportation ?  

Crain’s Chicago Business  explored all of these issues recently and presented very interesting conclusions and facts.  One of which is that in Illinois .9 people will turn 65 by 2030 for each new person added to the general population since 2000; and in Ohio the ratio is 4.3;  Iowa the ratio is 7.9.  Is this evidence of a work force drain in Ohio, Iowa and other similarly situated states ?  Does this bode well for the real estate and other industries in Illinois ?  Consider all of this as you formulate or amend your long term vision for your company, including where to expand your operations.

 

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Brad Kaplan

rad assists Owners, Operators and Receivers of Hotel, Office and Industrial properties with their Real Estate, Finance, Leasing, Construction and Organizational challenges; specifically, negotiating and drafting hospitality, purchase, sale, financing, leasing, construction, franchise and management agreements. He has in the past and presently…

rad assists Owners, Operators and Receivers of Hotel, Office and Industrial properties with their Real Estate, Finance, Leasing, Construction and Organizational challenges; specifically, negotiating and drafting hospitality, purchase, sale, financing, leasing, construction, franchise and management agreements. He has in the past and presently serves as general counsel and national real estate counsel to several domestic and internationally based public and privately held companies. Brad represents foreign businesses doing business in the United States and U.S. businesses doing business abroad; and is a former Chairman of World Services Group (www.worldservicesgroup.com) an international consortium of legal and other professionals. Brad has achieved the highest rating, AV Preeminent®, from Martindale-Hubbell®. He is an active member of the Illinois Bar and maintains an office in both the firm’s Cincinnati and Chicago offices. Brad is the editor of the Real Estate Advisor Law blog , a tool that highlights articles and observations of Ulmer & Berne attorneys on various trends and opportunities affecting the commercial real estate and construction industry, and is a frequent speaker on internet and social media issues.