In an interview today (June 26), Sumers and Thomas J. Saylak,also a senior managing director, provided GlobeSt.com with theirtake on the current slippage. Both executives agreed that whatwe're experiencing is, in fact, more a correction than a slump.

"In almost every market, the industry has experienced softerdemand and declining rents, depending on when the owner bought thebuilding," Sumers commented, "but, for example, $83 per sf in theSouth of Market district of San Francisco was not sustainable."

Nevertheless, the investment advisors are realistic in terms ofhow long the current correction will last, and they challenge thebelief that the real estate recovery will be in full swing by Q3."There will be an uptick in activity in the fourth quarter," Saylakpredicted, "but it won't be what people are expecting."

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John Salustri

John Salustri has covered the commercial real estate industry for nearly 25 years. He was the founding editor of GlobeSt.com, and is a four-time recipient of the Excellence in Journalism award from the National Association of Real Estate Editors.