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Commercial real estate: Voit sees a spike in short-term lease activity
The company’s Commercial Real Estate Forecast drew more than 250 business leaders.
By Ashly McGlonePublished: February 03, 2010 09:55 AM
Voit Real Estate Services’ Commercial Real Estate Forecast drew more than 250 business leaders to the Pacific Club in Newport Beach last week.
The panel included keynote speaker Christopher Thornberg of Beacon Economics; residential expert John McMonigle of the McMonigle Group; Robert D. Voit, president and founder of Voit Real Estate Services and Ken Gaitan, head of Bank of America’s OREO West.
Thornberg projected that the government will announce that the recession officially ended in September of 2009, but noted that the economy is being “propped up by federal fiscal intervention,” and housing, consumer spending and the labor market remain distressed.
“California does very well during good times and very poorly during tough times,” Thornberg said. “California is overexposed to this cyclical economy because we are real estate and export intensive. We sell capital goods and high-tech to other states that are suffering.”
Thornberg also expressed concern over current controlled low-interest rates and said that when they rise, inflation will likely follow. However, this same inflation, he said, will help real estate owners regain lost value in their properties.
On the positive side, Bank of America’s Gaitan said he’s noticed that institutional buyers are starting to bid above opening price on premium REO properties.
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The panel included keynote speaker Christopher Thornberg of Beacon Economics; residential expert John McMonigle of the McMonigle Group; Robert D. Voit, president and founder of Voit Real Estate Services and Ken Gaitan, head of Bank of America’s OREO West. Thornberg projected that the government will announce that the recession officially ended in September of 2009, but noted that the economy is being “propped up by federal fiscal intervention,” and housing, consumer spending and the labor market remain distressed. “California does very well during good times and very poorly during tough times,” Thornberg said. “California is overexposed to this cyclical economy because we are real estate and export intensive. We sell capital goods and high-tech to other states that are suffering.” Thornberg also expressed concern over current controlled low-interest rates and said that when they rise, inflation will likely follow. However, this same inflation, he said, will help real estate owners regain lost value in their properties. On the positive side, Bank of America’s Gaitan said he’s noticed that institutional buyers are starting to bid above opening price on premium REO properties. NEXT PAGE >> Related headlines Crystal Cathedral closes Rancho Capistrano operations Costa Mesa officials seek to preserve O.C. fairgrounds $40 million in new homes sold on first day in Irvine |
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