Worth Repeating Winter 2010

Winter 2010

Development ‘10, Orlando

Speaking at the Real Estate Cycles Are Predictable! closing session, "We’re in the ditch, not the abyss. This is an incredible time to recast who you are for opportunities coming." Christopher Lee, president and CEO, CEL & Associates

In discussing problems that will derail you from success, "Lack of a differentiating story – everybody has the best people, focus on knowledge. Also articulate a vision and don’t wait two more years to grow your business." Christopher Lee, president and CEO, CEL & Associates

Predicting that the days of the 200- 300 bed community hospitals are over, "The arms race with regard to healthcare facilities has got to end." Todd Lillibridge, chairman and CEO, Lillibridge Healthcare Services, LLC

Commenting on current operating challenges, "Your prospect is the other guy’s termination." William P. Hankowsky, chairman, president and CEO, Liberty Property Trust

From the industrial panel in response to when speculative development will return, "Three years in most markets, but one year for California."

From the office market panel, "A lack of quality assets on the market is leading to scarcity of premium in some areas. Equity sales transaction volume is expected to reach 2003 levels, as activity accelerates during 4Q10."

Listen Now, Chat Later Developing Leader Podcast, September 27, 2010

In response to a question regarding the greatest lessons to be learned from the current real estate crisis, "The greatest lesson learned from ANY crisis: DNROOC!!! [Do not run out of cash!] You run out of cash and you run out of an ability to survive. Having a well managed and flexible balance sheet ... not an overleveraged one, is the key to surviving a crisis." Ed Fritsch, CEO, Highwoods Properties, Inc.

"Confronting Issues of Sustainability in Commercial Real Estate Development Agreements" Webinar, October 2010

"Be careful what you promise/warranty. Avoid specifics in the level of energy savings and reduction of operating/maintenance costs. Acknowledge the difference between aspirational standards [LEED] and legal obligations [code requirements] and agree to map out a path such as audits and tenant energy allowances." Peter B. Meyer, Ph.D, The E.P. Systems Group, Inc.

"Securing Debt and Equity in Today’s Economic Environment" Webinar – August 12, 2010

"Debt markets are better than 12-18 months ago. In 2009, you couldn’t sell anything with vacancy, now capital markets realize that some vacancy can be forecast to lease up. In 2010, tenant rep brokers want to know the capital structure of the building and quality of the lender. Recapitalization opportunities abound for those investors with equity. Unprecedented low interest rates will remain attractive for refinancing and recapitalizations, but at lower LTV ratios." Robert L. Sult, Jr., managing director, USAA Real Estate Co.

Solution Series Program, "Inside the Minds of Institutional Investors" – June 16, 2010

In discussing key findings of the Korpacz Real Estate Investor Survey®, "In the retail and industrial markets, free rent for a 10-year lease can range up to 12 months while it is less in the apartment markets. The office markets report the greatest amounts of free rent – up to 24 months, averaging just over six months for the 18 individual survey markets." Susan M. Smith, director, PricewaterhouseCoopers and editor-and-chief, Korpacz Real Estate Investor Survey®.