R&D investment down 2% in CT.

Occasionally I receive calls from reporters looking for my input on the industrial real estate markets…here in the state and the region. Most questions are fairly typical. Vacancy rates…reasons for a plant closings…when are we going to get out of this mess…etc etc etc. Last week I received a call from a reporter with a little deeper question. “If state companies are investing 2% less in R&D (according to a recent report), then what long term effects does that have on the market place, short and long term”? Tough answer. The easy answer would be the obvious…the less R&D investment, the less chances of a healthy industrial market. However, on second thought…probably a non-event. While less R&D investment means less creation of new products, the reality is that most companies in CT don’t produce what they invent…at least not in CT…at least not in quantity! So, while less R&D investment isn’t a good thing…when it comes to its effect on warehouse/manufacturing space in CT…not a lot of effect. Elsewhere (i.e. outside of CT)? Bigger effect!

On that topic…take a look at a recent WSJ article on companies keeping their cash. When you hold onto your cash, you can’t do a lot of expanding!

See attached WSJ article: WSJ – Companies Cling to Cash

Keep smiling and Happy Holidays!

Mark