News & Research Archive

Contrary to Predictions, 2012 should be a Banner Year

Jan 09, 2012

 

As we enter 2012 we already have a number of doomsayers that are predicting a poor 2012. Economic uncertainty throughout Europe, the slowdown of economies in China and India and an election year in the United States with a split Congress unable to pass any real legislation to create jobs are all legitimate concerns. As salespeople we are always optimistic – we are the rallying force for the economy. We succeed if we sell. Great salespeople don’t focus on the negative; only the positive and I believe that there are many positive things that could make 2012 a very good year.

Our economic downturn officially started in September of 2007. Although we supposedly ended our recession in 2009, the realty is that most of us feel the recession has never ended. Historically, long recessions such as this end because consumers pay us out of these downtowns; this has not happened because most Americans are simply tapped out and do not have the cash or the credit to buy. In 2012 things will begin to change and salespeople will be leading the change.

Consumers are going to be forced to buy which will lead to natural economic growth. Essentials have to be replaced – one can only drive on bald tires for so long, a stove and refrigerator are necessary household items and clothes wear out. Four years of waiting to purchase essentials is too long and consumers en masse will be forced to find money to buy necessary items. This increase in expenditure will start in 2012 and will lead to job growth and economic gain. The same principle applies to businesses. Old furniture will have to be replaced, servers, phone systems and updated wiring will be required even though businesses do not have the cash reserves to do so, they will have no choice.

What is interesting about this prediction is that it is not based on anything new nor is it profound; it is based upon history that is staring us in the face. Yet economists and doomsayers are not talking about it, politicians are not talking about it; no one seems to grasp its importance. More importantly, as we start a new year we need to understand and appreciate how this prediction can be viewed as a bright spot in this gloomy beginning of a new year.

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Written by: Hans Hansson

E-mail: hans@starboardnet.com


Hans Hansson is President of Starboard TCN Worldwide Real Estate Services as well as a member of the Board of Directors for TCN Worldwide Real Estate. Hans has been an active broker for over 27 years in the San Francisco Bay Area and specializes in office leasing and investments. If you have any questions or comments please email hans@starboardnet.com or call him at (415) 765-6897. You may also check out his website, http://www.commercialspacefinder.com/.

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