Commercial Property News - October 2008 - (Page 27)

TITLE INSURANCE s INDUSTRY PULSE Report Card Title Insurers Rate Investor Reactions To Current Market Conditions By Eugene Gilligan T he title insurance industry has been severely damaged by economic fallout in both the residential and commercial real estate sectors, as layoffs and office consolidation offer means for survival among many title companies. But that has not kept title insurers from taking an objective view of the business climate and their clients’ reactions to it. The good news today,noted Tom Garner, vice president & regional manager for Fidelity National Title Group, is that while deals are taking longer to execute, they are at least still getting done.That was not the case during the economic downturn of the late ’80s and early ’90s, “During the S&L meltdown, deals basically stopped,” he said. “Deals are still happening, but they’re taking longer to get done. What would previously take 90 days to get done is now taking 150 days between opening and closing.” This cycle offers other positives over that last deep downturn but also some worsened conditions.Topmost among title insurers’ concerns: Not Many Head Scratchers Overbuilding, for the most part,is not an issue this time around. “I’m not seeing a lot of office buildings going up that make me shake my head and ask, ‘Why?’” Garner said, noting that developers are building to market demand and scal- ing back projects as called for. “Instead of them building a 40-story office tower, they’ll build a 20-story office tower.” Added Adam Cutler, vice president & special counsel for First American Title Insurance Co.’s Philadelphia office, “We haven’t overbuilt in this cycle, so there isn’t as much space that will have to be absorbed.” Good Sense of Timing Investors are playing the market largely the way it should be played, according to Bruce Hawley, senior vice president, senior under- PRESENTED BY: REGISTER EARLY AND SAVE! Exploring Single Tenant Net Lease Financing? Corporate Executives – invest in your growth, not in your real estate Brokers – reach a successful closing Nov. 17, 2008 | Hyatt Regency Washington on Capitol Hill Developers – create a JV and/or a bankable take-out Private Equity Investors – increase your ROI by monetizing your real estate Real Estate Investors – receive up to 95% LTV ﬁnancing 5Ripple Effect? Macro vs. Microeconomic Impact 5Presidential Impact: Post-Election Opportunities 5Winning with the GSA Luncheon Keynote Neil Albert Deputy Mayor for Planning and Economic Development, District of Columbia Choose the Right Guide: Lexington Realty Trust Work with America’s largest net lease REIT, with $7 billion in assets under management. EARLY-BIRD REGISTRATION: $195 (through Nov. 14) ON-SITE REGISTRATION: $245 (after Nov. 14) DISCOUNTED RATE FOR THREE OR MORE: $165 per person Enjoy a Proﬁtable Partnership Let us structure your next transaction to meet your needs. For sponsorships, speaking opportunities, registration details, discount codes and more information on our conferences: Call 877-9ASK-CPN Or visit www.CPNOnline.com/conferences GOLD SPONSOR: SILVER SPONSOR: BRONZE SPONSOR: One Penn Plaza, Suite 4015, New York, New York 10119-4015 Richard J. Rouse at 212-692-7220 or rrouse@lxp.com Natasha Roberts at 212-692-7233 or nroberts@lxp.com www.lxp.com N E W YORK CHICAGO DAL L AS INVALUABLE KNOWLEDGE, INSIGHT, ACCESS AND NETWORKING. www.cpnonline.com • October 2008 • COMMERCIAL PROPERTY NEWS 27 http://www.CPNOnline.com/conferences http://www.lxp.com http://www.CPNOnline.com/conferences http://www.lxp.com http://www.cpnonline.com

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CPN - October 2008 Contents Starting Line Industrial Data/Analysis Conferences Chicago Market Profile Finance International Title Insurance Brokerage Corporate Report

Commercial Property News - October 2008

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