Letter From the Editor
A Sense of Responsibility
By its very nature, commercial real estate is an opportunistic business. So it is really not surprising that a growing number of U.S. investors are forming funds, positioning themselves so that as soon as they perceive a bottom to the market, they can buy. And the funds are sizable: At press time, for instance, Rockwood Capital L.L.C. had just closed an investment fund at $964 million.
Long-Range View
With so many corporations struggling to survive today, it may seem surprising that corporate real estate strategies remain centered on long-term goals. But despite their efforts to reduce costs to cope with current challenges, many corporate real estate executives are keeping at least one eye on the future, ensuring that immediate needs do not circumvent future plans.
In Search of Opportunity
There’s no doubt that times are tough. The Dow is down more often than up, major companies are begging for more and more bailout money, smaller retailers are going out of business and homeowners are increasingly losing their jobs and defaulting on their mortgages.
Taming a Wild Horse
Our new president has taken office at a difficult time, assuming the reins of a financial horse gone wild and to date unwilling to be tamed. Calming such a beast takes a firm and steady hand, a confident demeanor and consistent direction. Let it take the lead even briefly and you lose control.
A New Year’s Plan
Welcome to a new year—one that, I hope, brings better news than the last one. Granted, there are a lot of negative predictions, including higher CMBS loan delinquencies and at least another full year of poor economic performance for the nation, if not the world. More layoffs are expected, which can only reduce consumption further, and at least one entire U.S. industry is in need of a bailout to survive.
Starting Line: New Tools for a New Time
Hearing from our 2008 Executive of the Year Award winners has given me new reason to think about what it takes to surmount difficult markets. The executives’ reflections on achieving in markets good and bad reveal no traits that are unusual in and of themselves. Nor are their efforts foolproof, as the resignation of our top award winner days before the award ceremony indicates. But the executives’ application of a series of simple, even old-fashioned traits has for the most part to date won survival, success and certainly the admiration of their peers.
Investing in the Future
It has been a tough haul, and it doesn’t look like it will get easier anytime soon. The stock market has been gyrating for weeks now, as investors wait for the next shoe to drop in a market that seems to have more shoes than feet to wear them. The passing of Election Day will likely help, ushering in clearer direction through the determination of the next President of the United States, not to mention whether Congress becomes even more Democratic than it already is.
Weathering the Storm
It’s tough to write about the financial markets right now, when every day brings something new and unprecedented. At press time, the federal government had just announced proposals to staunch the blood flowing from Wall Street, following a stream of negative news relating to Lehman Brothers Inc., Merrill Lynch & Co., AIG and others.
A New Game
The shift into September signals the commencement of the next business season—a good time for new beginnings. CPN celebrates this with our new format.
What's New?
As the September launch date for CPN's promised redesign approaches, we are hard at work finalizing our products. Keep an eye out: The new size accommodates a very different look from what you've grown accustomed to. You will find an exciting array of new columns, as well as new contributors and a fresh approach to the business of commercial real estate.