Development Magazine Winter 2011

Perspectives

Worth Repeating Winter 2011

Development ‘11, Scottsdale

From the opening session, Economic Outlook: The Great Debate, “I see a low possibility of a double-dip reces­sion, and that’s partially due to an increasingly global economy. Whereas the U.S. was 50 percent of the world’s GDP in past recessions, today it’s 19 percent of global GDP. That’s a positive. Information technology is the strong story for the long haul.” Dr. Glenn Mueller, University of Denver

Commenting on debt challenges in a presentation to the Industry Trends Task Force, “Lending resources are stretched thin so be realistic on tim­ing. Appetite for most life companies and banks is still strong, but cautious on pricing and quality.” Val Achtemei­er, executive vice president, capital market, debt and equity finance, CBRE, Inc.

From the Strategic Asset Manage­ment and Positioning Panel, “The new normal is the tenant asking for the landlord’s financials. Tenants want maximum flexibility to grow, renew and contract. They only want a five-year lease with a five-year option. Everything takes longer so get a plan done with the price worked out to bring to the tenant. Person-to-person negotiation is important – don’t rely on technology all the time.”

"The Congress needs adult supervi­sion. Romney has the best resume, but we need a candidate to show he’s got what it takes to win. 2012 might be the most consequential elections in the nation’s history; we are a house divided. Ohio, Indiana and Virginia are the key states Obama will work hard for in 2012.” Karl Rove, political strategist

Noted in the closing session, “The will to win is nothing more than the will to prepare.” Jerry Colangelo, business leader and sports magnate

With regard to the state of the industrial markets…

“Rents are still real tough [to pencil out for new development]. We are so far from replacement costs it’s mind boggling.” Thomas Wattles, chairman, DCT Industrial Trust

“Industrial tenants would love green development but they don’t want to pay for it.” Albert Corr, senior vice president, KTR Capital Partners

“Demand for DC space is com­ing from food, beer, retailers and consumer products as well as 3PLs.” Anonymous Tweet

Dev ‘11 Tweets

“Those people who are really out there cooking will feel the upturn before it can be quantified.” James Pederson, CEO, The Pederson Group

“We put our heart, souls, cash and blood into our projects. When there’s new people and easy equity, it’s time to get out.” David Allred, Douglas Allred Company

“You make your money on the upside of the curve. Don’t wait for 2014 to jump in - we’ll be at the top of curve by then.” Anonymous

Solution Series Program, “Top 10 Trends Driving Demand for Today’s Data Center” – October 4, 2011

Speaking on what a building needs to have to meet today’s data center criteria:

Structural load of 150 lbs per square foot minimum (175 preferred); 14 foot ceiling height minimum (17-18 preferred with raised floor); 35,000 square foot floor plate; proximity to substation power (132kV preferred); room for generators and cooling tow­ers. Paul Schlattman, vice president, mission critical facilities, ESD Global

Interview with Dr. Stephen Fuller, “Who Will Fill Your Space: Surprising Facts About U.S. Jobs – September 2011

Discussing the economic outlook, “It will feel like the first half of the 1990s, when we went nowhere and housing values didn’t go up. Think of it as a space between eras - it will be a slow year and a half, but by 2013 growth should be accelerating. This isn’t going to be a lost decade. It’s just going to be a rocky decade. The smart people will do fine and the careless people will go out of business.” Dr. Stephen Fuller, George Mason University

From the Archives: Perspectives Articles from the Previous Issue

Alex Klatskin

At Closing - Navigating the Climate of Uncertainty 

Now that the summer has ended and we are all back at the office fully rested, we are looking to see what direction the economy and real estate markets will be heading. While the first two quarters of this year were very encouraging, the summer has brought us more uncertainty.

People networking

Worth Repeating Fall 2011 

Wisdom and industry outlooks from I.con 2011, Solution Series program on retail, a corporate Board meeting presentation and a Global Manufacturing Trends Webinar.