The Dawning of a New Era for Commercial Real Estate Investment. (Focus on Investment Conditions)

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The last 18 months have been arduous for even the most resilient among us. A recession, the September 11 terrorist attacks with continuing threats of terrorism, corporate accounting scandals and company bankruptcies, the tumbling stock market, and now the likelihood of military action with Iraq have taken their toll on our nation's psyche.

Most investors were hopeful that the economy would be back on a firm growth track by now but that is not the reality. Working off the excesses created during the tech bubble is taking more time than expected. Slow economic growth is killing demand for commercial real estate, and as a result, our outlook is more bearish now than it was just a few months ago.

Despite the slow growth, the U.S. economy has held up relatively well thus far, thanks to consumers and the aggressive low rates initiated by the Federal Reserve. Mid-term elections may be over, but there remains plenty of uncertainty ahead. The …