CPN - December 2008 - (Page 12)

MARKET INTELLIGENCE CONFERENCES Equity Exists; Confidence Needed D Better Solutions = Better Information LA Piper held its Global Real Estate Summit 2008—”What Comes Next”: Opportunities,Risks and Rewards—on Sept.23, just before the series of Congressional votes that resulted in the Emergency Economic Stabilization Act of 2008.Panelists discussed the difficulty of valuing those distressed assets that the federal government would clearly end up owning. tween the current situation and the savings-and-loan-association meltdown. Lonny Henry, vice chairman of investment banking for JPMorgan Securities, noted, “It wasn’t commercial real estate values that undermined the CMBS market.” Wachovia Securities head of real estate financing Lawrence Gray stated that his firm’s construction loan originations were at the time down Better Information = Better Decisions Real estate economist Peter Linneman (left) and mogul Sam Zell talk shop. Better Decisions = Higher ROI To learn more about better solutions and a demo, contact us at 866-230-4685 or email us at IRESsales1@intuit.com Intuit Real Estate Solutions Portfolio Modeling • Budgeting • Waterfall In his opening keynote speech, uber-dealmaker and Equity International chairman Sam Zell stated, “This entire crisis could and should be placed on the shoulders of the accounting profession.” Despite the many grievous mistakes made by other parties, he insisted that “without fair-market-value accounting, this whole situation would not have reached its current level.” On an optimistic note, Zell added that little property has been added to the commercial real estate inventory during the past 18 months. He also noted that there is no shortage of equity for top-tier assets, though he predicted a long, slow recovery for “commodity real estate.” Wrightwood Capital chairman & CEO Bruce Cohen, who moderated “The Outlook for Capital” panel, expressed a pervasive sentiment when he said that the response to the crisis would be “less about filling a capital gap and more about providing confidence.” Panelists emphasized the differences be- 50 percent but outstandings were up 6 to 7 percent.“We’re just not getting taken out”on existing construction loans, he said. Before the crunch, the CMBS market had been active in these loans. —Scott Baltic Election Aftermath During the 2008 DLA Piper Global Real Estate Summit, a power pair of former politicians discussed the transition of power that will occur on Jan. 20, and they took a worldly view on the matter. “America’s standing in the world is the lowest it has ever been,” stated DLA Piper global chairman and former senator George Mitchell. “A major task will be to regain our moral status in the world.” Former Department of Housing and Urban Development Secretary Jack Kemp, a one-time candidate for vice president of the United States, called for the next administration to partner with the country’s European allies on a “21st-century Marshall Plan” to promote development in the Islamic world. 12 Commercial Property News • December 2008 • www.cpnonline.com http://www.realestate.intuit.com/ http://www.cpnonline.com

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CPN - December 2008 Contents Starting Line Retail Data/Analysis Conferences Boston Market Profile Finance International Property Management

CPN - December 2008

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