In An Uncertain Economy, Real Estate Holds Its Ground
- Topics:
- Market Studies
- Source:
- Knowledge@Wharton
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Overview: This article illustrates an example of Real-estate entrepreneur who stunned a gathering of 300-plus developers, brokers and academics, when he told them how the company got a big check for constructing an office building. He told that somebody just paid EOP $85 million not to build a building that they had leased from them but the tenant had signed a lease for a property it no longer wanted, and paying off EOP was the cheapest way out. The point of this story was that in the present economic climate, no one is taking any chances. Developers and tenants are restraining their ambitions and cutting their losses because of the impact of September 11 on real estate, the current economic downturn, the coming design and construction changes, niche markets and the pros and cons of being publicly or privately owned. Property markets have held their ground fairly well in the current uncertain economic times. It explains that wherever the investments come from in the long run, the bigger macroeconomic trends are encouraging.
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Format: HTML | Date: May 2002 | Pages: 1
