ask the ADVISORS
What issue do you think
will have the biggest
impact on commercial real
estate in 2008?
Ted Bywater, Chairman, Bywater Co.
Two things will dramatically affect our business this year. The
first is the limited availability and increased cost of credit,
which will greatly reduce the number of deals that get done
next year. The second thing that will negatively affect us will be
the huge increase in sublease space brought on by the significant reduc-
tion in activity that most businesses will experience. This will result in a
significant reduction in rental rates going forward for the next few quar-
ters. That should cause a significant drop in sales prices of investment
properties.
Edgar Jones, VP, Rockefeller Group Development Corp.
Oddly enough, I think the biggest impact on commercial real estate
will be what happens with residential real estate. Typically, commer-
cial lags residential in both rising and declining markets. We have been
lucky that the commercial market has held up fairly well so far, but
dark clouds are forming due to the problems in the capital markets.
Nevertheless, if the residential market can start making a comeback
sooner rather than later, the commercial market may do better than
what history would predict.
Larry Richey, Senior Managing Director, Cushman & Wakefield of Florida
Almost every year, the economy is the most significant factor impact-
ing the commercial real estate market, and this is especially true for
2008. Employment and population growth are the primary drivers of
the Florida economy and we clearly face a challenge to maintain our
performance of recent years. The tourism industry should perform well
this year and the recent decline in single-family home values should
actually help us in our economic development efforts throughout the
state.
David Sobelman, VP, Calkain Realty Advisors
Macroeconomic influences, as a whole, will have drastic implications
for the commercial real estate investment market. Specifically, issues
that are most important to voters in this election year will be at the
forefront of the media’s coverage and, therefore, investors’ minds. Oil
prices, employment, credit markets and, subsequently, consumer con-
fidence will drive how commercial real estate will fare in the coming
year.
RealEstateFlorida
EDITORIAL ADVISORY BOARD
MICHAEL F. BEALE
Highwoods Properties
WALTER BYRD
Transwestern
F.B. “TED”
BYWATER
Bywater Co.
PHILIP CARROLL
KeyBank Real
Estate Capital
JOHN F. COLEMAN
EastGroup
Properties
SUSAN CUSICK
Imperial Bank
WILLIAM H. HOLLY
Holly Real Estate
EDGAR JONES
Rockefeller Group
Development Corp.
JOSE I.
JUNCADELLA
Fairchild Partners
KENNETH M.
KRASNOW
Apartment Realty
Advisors
JACK LOWELL
Flagler Real Estate
Services Inc./Oncor
International
STEVEN W.
MOREIRA
Magic Cos.
KEN MORRIS
Morris Southeast
Group/Corfac
International
WILLIAM S. MOSS
CB Richard Ellis
LARRY RICHEY
Cushman &
Wakefield of
Florida Inc.
MOSES L. SALCIDO
Panattoni
Development Co.
LLC
DAVID J.
SCHWARTZ
Management
Consortium Inc.
JERRY SHAW
Opus South Corp.
CYNTHIA C.
SHELTON
Colliers Arnold
DAVID SOBELMAN
Calkain Realty
Advisors
MICHAEL STEIN
Aztec Group Inc.
SCOTT STEPHENS
HREC Investment
Advisors
KEITH A. TICKELL
Flagler Development
Group
TODD M. YATES
