Commercial Property News - November 2008 - (Page 16)

MARKET INTELLIGENCE CONFERENCES Net Lease Experts Urge Patience T he roster of speakers at CPN’s annual Net Lease Summit included some of the industry’s best-known names, but the star attraction turned out to be an enormous—and unwelcome— attendee. That elephant in the room, of course, was the historic financial crisis that had gripped the world by early fall and offered a recurring perspective throughout the event, as more than 30 experts offered timely, thought-provoking assessments of net lease investment and the financial crisis to their audience of several hundred real estate professionals. Setting the stage for the event, economists David Wyss of Standard & Poor’s and Craig Thomas of Citi Property Investors said they expect conditions in the United States to get worse before they get better. Yet offered some encouraging notes. Keynote Speaker Paul McDowell (at right) The Great Debate panelists David Sobelman, David Silvers and Howard Sands (above, left to right) “We’ll get through this,” he said.“It is a recession but not anywhere close to the problems we had back in ’91, ’92.” Speakers gave a tentative thumbs-up to the $700 billion federal rescue of the financial system but also urged patience. “Ultimately it does help, but it’s not an overnight panacea,” said Warren Ashenmil, managing director of CMBS/ commercial real estate for Tricadia Capital L.L.C.“It does take time.” In addition to the unsettled financial markets, successful net lease investment strategies formed a major topic of discussion. Saleleaseback opportunities will expand as corporate owners look for alternative finance vehicles in a time of tight credit, predicted Mindy Berman, managing director of corporate finance for Jones Lang LaSalle Inc.’s capital markets group. She noted that the $10 trillion in corporate debt on United Statesbased companies’ books far outstrips the $4 trillion worth of corporate real estate assets. Ironically, the credit crunch has made it easier to get the ear of net lease merchant builders, noted Richard Rouse, vice chairman & chief investment officer for Lexington Realty Trust. Before the credit crunch,developers would often dismiss offers to purchase projects at 8.75 or 9.5 cap rates, but the tide has turned.“What we hear out there 16 Commercial Property News • November 2008 • www.cpnonline.com http://www.transwestern.net http://www.transwestern.net http://www.cpnonline.com

Table of Contents Feed for the Digital Edition of Commercial Property News - November 2008

CPN - November 2008 Contents Starting Line Seniors Housing Data/Analysis Conferences Through the Fog CPN’s Top Cities for Investment & Corporate Relocation Finance International Sustainability CPN-Nielsen Claritas Special Report

Commercial Property News - November 2008

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