AUDIO – The “new normal” in real estate?

June 22, 2009

Not a lot of goodness and cheer in the real estate industry these days.

In the first day of our annual Reuters Real Estate Summit, our first few guests were not seeing a lot of the so-called “green shoots” that other parts of the U.S. economy are supposed to be seeing.

There are still an enormous number of troubles out there — including a lack of available credit and the dire need to restructure many loans made during the go-go days of a few years ago.

While the homebuilders and their stocks have been walloped the past few years, the attention this week (so far anyway) has been on the commercial side.

When things are bad, people often choose one of two routes — 1) head down, full of despair and loathing; or 2) hoping that the worst has happened and better days are right around the corner.

For Jacques Gordon, chief strategist at LaSalle Investment Management, he’s hoping for the best, but knows there are still some major work to get done.

Gordon was one of the featured guests on the first day of the summit, which is being held this year in cities around the world, including New York, Beijing, London, Mumbai, Sydney and Kuala Lumpur.

For the audio clip of his comments, please click on the following link:

Jacques Gordon

One comment

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In the real estate commercial market things are changing. More people are shopping online, working online from remote locations, and offices and companies are located in residences.

There still will be demand for space for service businesses and where hands on shopping is done, but other specialty businesses will be less demanding for space.

I think that the credit availability is an over blown excuse. What we are seeing is a shake out of marginal businesses which did not realize that they were bankrupt and were surviving on OPM (Other peoples Money)

I believe that a wealth based business comminity will emerge and that the leveraged buy out will disappear from the business community. I believe that having a lot of cash will not be a bad things and I believe that the tax laws should be changed to allow companies to have a cushion to ride out tough times.

Posted by F Belz | Report as abusive