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Real Estate Bigwig Zell Sees 2009 Recession

Posted By admin On September 24, 2008 @ 4:04 am In Money Watch | Comments Disabled

Reuters [1]
Wednesday, Sept 24, 2008

Real estate heavyweight Sam Zell said on Tuesday the U.S. economy is likely to slip into recession next year, while the single-family housing market is close to bottoming out.

But on the downside, Zell, who earned the moniker “The Grave Dancer” for buying up distressed commercial real estate properties in the early 1990s, said office buildings that are not top quality or located in downtown city markets will see a long, slow downward spiral.

“This is not a time to own commodity (office buildings) in the suburbs,” said Zell, speaking at the DLA Piper Global Real Estate Summit in Chicago.

(Article continues below)

“If there’s going to be a diminution of demand for office space, it’s going to be out there.” The credit crisis has dried up sources of debt for commercial real estate, which is heavily dependent on borrowing to fund construction and acquisitions.

This has stalled the construction of new office buildings.

“If there is no new supply, then high quality well-located prime real estate can only be terrific,” said Zell.

Full article here [1]

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URL to article: http://www.prisonplanet.com/real-estate-bigwig-zell-sees-2009-recession.html

URLs in this post:

[1] Reuters: http://www.cnbc.com/id/26858394

[2] “The Next Tsunami to Hit will be the Commercial Real Estate Market”: http://www.prisonplanet.com/%e2%80%9cthe-next-tsunami-to-hit-will-be-the-commercial-real-estate-market%e2%80%9d.html

[3] Government Bailout Actually Hurt Housing Recovery: Zell: http://www.prisonplanet.com/overnmentbailouthurthousing.html

[4] The “Current Housing Recession is Rivaling the Great Depression’s Real Estate Downturn [and] Will Easily Eclipse It In the Coming Months”: http://www.prisonplanet.com/the-current-housing-recession-is-rivaling-the-great-depression%e2%80%99s-real-estate-downturn-and-will-easily-eclipse-it-in-the-coming-months.html

[5] Chinese Politicians Are Buying Billions In U.S. Real Estate: http://www.prisonplanet.com/chinese-politicians-are-buying-billions-in-u-s-real-estate.html

[6] Commercial real estate maturities will peak in 2012 – $350 billion in loans coming due and hundreds of additional bank failures. Bank lending in the CRE market collapsing: http://www.prisonplanet.com/commercial-real-estate-maturities-will-peak-in-2012-%e2%80%93-350-billion-in-loans-coming-due-and-hundreds-of-additional-bank-failures-bank-lending-in-the-cre-market-collapsing.html

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