from John Vick
Managing Director, Development & Asset Strategy
I wanted to drop a brief note from this afternoon’s Urban Development/Mixed Use Council (bronze flight)— this recession is unique because of the way in which it happened, meaning the recovery will be a lot different. In most markets, other than single-family housing, this problem is about lack of demand as opposed to an oversupply. The recovery is expected to be extremely granular, asset-by-asset and submarket-by-submarket (not in broad groups).
Capital is available for good deals, but there is still a disconnect in values. Owners and lenders are soon going to be forced to reconcile the differences as the debt matures…with an increase in interest rates accelerating this process.
Let’s hope that happens soon…
