Review: The Next 100 Years: A Forecast for the 21st Century

Winter 2009-2010, Vol. 34, No. 3 Abstract: In reviewing this geopolitical perspective by author George Friedman of the next several decades and beyond, CRE Julie McIntosh recalls the days of school children hiding under desks in the event the U.S. would be “nuked.” Today, and over the next several decades, we are and will be behaving… Read more

Review: Active Private Equity Real Estate Strategy

Winter 2009-2010, Vol. 34, No. 3 Abstract: In his review of CRE David J. Lynn’s recently published book, Active Private Equity Real Estate Strategy, CRE Scott Muldavin takes us through various chapters and concludes the book “…effectively achieves what it intends, providing readers with an inside look at the kinds of issues, investment factors and other considerations… Read more

Going from Mark-To-Market to Mark-To-Make Believe

Volume 34,  Number 3 Winter 2009-2010 By Robert J. Pliska, CRE, CPA Have we gone from “mark-to-market” to “mark-to make-believe?” Financial regulators consisting of representatives of the Federal Reserve, the Federal Deposit Insurance Corporation, the Comptroller of the Currency, and others released their guidelines, “Policy Statement on Prudent Commercial Real Estate Loan Workouts,” in late… Read more

Regional Economics – View from the Middle

Winter 2009-2010, Vol. 34, No. 3 Abstract: This article reviews commercial real estate market conditions in the Chicago area and provides a forecast of conditions for 2010. Authors Bach and Schuppan take a look at the office, industrial, retail and investment markets, with insight into vacancy rates, rental rates, lease rates, and local tax hikes and… Read more

Public Homebuilders Look To Build in 2010

Winter 2009-2010, Vol. 34, No. 3 Abstract: The U.S. housing market began its precipitous decline in 2006–2007. As late as the winter of 2009, the outlook for any new near-term construction was bleak, to say the least. However, beginning in the late spring of 2009, public homebuilders began buying residential lots in certain markets intending to… Read more

A Missed Assessment of Real Estate Debt Risk: How the Credit Rating Agencies and Commercial Bank Regulators Missed the Assessment of Real Estate Debt Risk, Creating the Largest Real Estate Bubble in U.S. History.

Winter 2009-2010, Vol. 34, No. 3 Analyst support from Ian C. Broff, CFA Abstract: A missed assessment of real estate debt risk is the root cause of both the savings and loan crisis in the early 1990s and the mortgage-backed securities crisis currently observed in the marketplace. A high risk of probable default developed as aggregate debt increased above annual average increases in both gross domestic product (GDP) and Consumer Price Index... Read More