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Lynn DeMarco and Randall Shearin,Roundtable Discussion Shopping Center Business and Staubach Retail’s East Coast Retail Investment Team recently co-moderated a roundtable of institutional investors to see what the market is buying, how the changing capital markets are affecting their behavior and what the trends are for institutional owners. The roundtable was held in September at the Westin Times Square in New York City. Attendees were Thomas Caputo, executive vice president of Kimco Realty Corp.; George Fryer, principal of AEW Capital Management; James Garofalo, director of retail asset management for TIAA-CREF Global Real Estate; Richard Coles, principal of Emmes & Co.; Adam Ifshin, president of DLC Management Corp.; Elizabeth Owens, senior vice president of BPG Properties Ltd.; Steve Vittorio, principal of Prudential Real Estate Investors; and Barry Argalas, senior vice president of acquisitions and dispositions for Regency Centers. The roundtable was moderated by Lynn DeMarco, managing director of Staubach Capital Markets, and Randall Shearin, editor of Shopping Center Business magazine. Shearin: Let’s start by talking about the turmoil in the capital markets over the last 6 to 8 weeks. Has this impacted your acquisition and disposition plans for the rest of the year? Ifshin: We are going to have to get …

By Jon Wheeler, president of Wheeler Interests Anyone keeping up with residential real estate knows that the market has slowed down significantly over the past year. Among other factors, this cool off can be attributed to the increase in subprime market lending practices. Banks and lenders decided to ease credit criteria, after the Federal Reserve Board lowered interest rates, by issuing loans to people who would not have previously been able to secure a home mortgage due to credit issues or income restrictions. Unfortunately, the instability of the residential market sometimes creates a perception of instability in the commercial arena in the minds of lenders. Lenders’ judgment may be impacted while underwriting loans by putting more consideration into how they underwrite the loan, to whom they write it and with what product. Due to this cool down, the national percentage for construction of new homes has fallen 2.1 percent (US Commerce Department). Thankfully, the southeastern Virginia market (where Wheeler Interests is headquartered) is an extremely vibrant area and is a great example of how a market can survive while many parts of the nation are struggling with the ripple effect that the downturn in the housing industry has wrought. This …

By Lawrence R. Armstrong, CEO, Ware Malcomb For commercial real estate developers and corporate real estate professionals, delivering buildings that ensure long-term real estate value is an important consideration. Buildings can and should naturally adapt to a maturing real estate market if they are designed to do so. Some key steps down this path include the following: Hire experienced commercial real estate brokers who specialize in your specific geographic market. Real estate is a local business and solutions that work in one region of the country, might fail in another. Set your deal up for success by working with a broker who has an in-depth understanding of your market. Work with your broker to determine the product type that will be most appropriate and marketable on a particular site. Understand the relevant tenant mix, in terms of size and function. What are the tenant sizes that are most prevalent in your market? Are there tenants of a certain size or type that are underserved? What are their functional requirements? How will your market mature over time? Can you design your project with enough flexibility to adapt to different tenant requirements in the future? Collaborate with an experienced commercial architect to …

By Robert. S. Aisner With all of the analysis by experts on the subprime situation, one can surmise that many residential real estate owners are finding themselves in a rather precarious position. But while it will take time to realize the full effects from the mortgage meltdown, there is a silver lining to the proverbial cloud: Multifamily demand remains robust, despite the shaky residential market, and it’s expected to stay that way. According to a survey released August 2, 2007, by the National Multi Housing Council (NMHC), the multifamily market is going strong. The NMHC says, as of first quarter 2007, there was actually a decrease in the number of renters leaving their apartments in order to buy homes. In its report “Quarterly Survey of Apartment Market Conditions,” NMHC found that “the continued strong demand conditions suggest that any supply spillover from the excess inventory in the for-sale market into the rental market has not exceeded the growing demand for apartment residences.” The quarterly survey, which was conducted the week of July 23 to July 30, 2007, polled 80 CEOs and other senior executives of apartment-related firms. Here are the other findings from the NMHC survey, as outlined in the …