Trendlines: It's a Brave New Washington

WASHINGTON, DC-To hear Greg Leisch tell it, it has never been a better time to be in commercial real estate than now. Leisch, president of Transwestern’s Delta Associates, was the keynote speaker at last evening’s Trendlines—a standing room only event held at the Ronald Reagan building. His take on CRE at the moment: it provides superior yield, has been attracting record funds even with the strong returns of the stock market. Also, leverage is cheap, Leisch said—and as an added bonus, real estate is an excellent hedge for inflation, which is showing disconcerting flickers of life.

Also, to hear Leisch tell it, it would never be a better time to own a time machine to take you back to 2010 or pre-crisis than now – if that is, you are industry player in the Washington market. In short, Washington is not returning to “normal”, Leisch said – that is, the Washington that before the crisis that could always count on more demand than supply for product. Instead, it has morphed into a competitive market, like the rest of the nation. This has its good points and its bad points.