Monday, November 09, 2009

2010 ULI Trend is a positive Outlook

We sent a letter to our clients back in March. We just read the ULI Trend Report for 2010 and believe our points are worth revisiting.

Yes, the prospects for commercial real estate are gloomy if; you overpaid, over leveraged, or over indulged in the 21st Century market. The prospects are sweet if; you want to get in now and; you are a tenant, you have cash, want to be patient, want to get creative.
Cash-on-cash valuations, value-add to distressed and high vacancy, new business models for CRE... are all plausible strategies in the next cycle.

Yes, transactions are and will be down. Get loaded, take aim, don't shoot yet, but get ready.

Real estate is extremely effective for building wealth since it produces cash flow, equity build up, appreciation, equity capture and tax advantages. Bought right, commercial real estate is still the best hedge for future inflation. Leased right, its the best place for for your company to sit tight.

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