Trends Affecting Real Estate Management

Journal of Property Management, January/February 1999 | Go to article overview

Trends Affecting Real Estate Management


This RVP roundtable took place during the 1998 Institute of Real Estate Management National Convention in Anaheim, Calif. All participants are CERTIFIED PROPERTYMANAGERS

JPM: What impacts have 1998 stock market declines and global economic downturns had on the real estate industry in the United States?

Smith (Region 3): With REIT stock prices down, yield requirements are up, and the prices REITs are willing to pay for property have declined. We have seen REITs backing out of a few deals when the due diligence did not meet their new yield requirements. There is also a significantly reduced interest on the part of REITs in new development and in land.

The conduits are going to the market at huge increases in spreads. Many conduits are pulling out of deals or only agreeing to close the loans if the rate is raised 75 to 100 basis points. The positive impact is that the market is likely to remain at equilibrium longer.

Kacirk (Region 11): The West Coast region, particularly Hawaii, have been affected by the Asian recession. Hawaii has not seen the turnaround in residential home prices that we have experienced in California. High-tech companies are seeing earnings and stock prices drop because of decreased spending in Asian countries, which may eventually result in layoffs and decreases in demand for production space.

Wilson (Region 13): The domestic stock market declines, the turmoil in Asia, as well as the new Socialist government in Germany, I believe, will have a decidedly dampening effect on the economy. In order for the Asian countries to get themselves back on a sound financial basis, they are going to have to export their way out of their problems, which means they will have to maximize exports to the United States while doing everything they can to minimize imports. I am also concerned that the new coalition government in Germany, which is heavily influenced by Socialists and the East Germans, could leave this country in a state of flux for the next 12 to 18 months. An executive of a German firm stated that German executives were moving funds out of Germany. This might be an opportunity to get increased German investment in the United States.

Murray (Region 2): On the East Coast, our economy is not as tied to the Asian market. Only 5 percent of the gross state product in New Jersey is exports to Asia, as opposed to California where it is 11 percent. Nevertheless, there is an effect, if only in attitude.

Birdie (Region 4): The Asian flu has occurred primarily because of the devaluation of Asian currencies. I think you will see some rebound soon because the underlying manufacturing fundamentals of the region are strong. When that rebound occurs, these economies will come back if their currencies can hold up. Goss (Region 5): Typically in our region, a national or international trend takes several years to be felt. Now, the economy is good and employment is up. The stock market decline has made investors more wary, however. They are taking a wait-and-see attitude.

Monroe (moderator): Several Gulf Coast industries-oil and gas, paper and pulp, and shipping-have been affected by the Asian market declines. Louisiana in particular is becoming concerned about what the future holds.

Pollan (Region 7): Texas and Oklahoma also are impacted by oil and gas prices, and the Asian crisis has lead to a significant decrease in demand. Consequently, companies that serve these industries have had massive layoffs. As a result commercial rents have stabilized, and some concessions are being seen.

Toothaker (Region 6): Many of the markets in Kentucky, Indiana, and neighboring states are secondary or tertiary and have not attracted much attention from REITs until recently. So the REIT slowdown has not had as much affect in our area. Generally, the economies of the area are strong, with unemployment averaging 3 percent.

Bamonte (Region 6): Our region is not very closely tied to global problems, so they have had very little impact in our area. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Trends Affecting Real Estate Management
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.